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> If you're going to IPO you need to show growth. It's the most important thing. I think you're in a chicken and egg situation here. The reason you want to see
by starttoaster 3y ago
> If you're going to IPO you need to show growth. It's the most important thing.
I think you're in a chicken and egg situation here. The reason you want to see growth is because as an investor you suppose growth is a good indicator for future profits. So the most important thing is actually still... profits.
- that_guy_iain 3y agoNo. Growth is important because it means the value in the future will be bigger.
- starttoaster 3y agoDid we say the same thing? What’s valuable? Income. Nothing besides money really matters to a for-profit business.
- that_guy_iain 3y agoYet some how for-profit companies become more valuable when they just grow their user base. You seem to be applying basic logic to company valuations while at the same time you probably also understand the finical market is completely fucked up. Amazon lost money for god only knows how long and was extremely valuable and sought after investment for nearly the entire time. Why? Because growth. They don't care what kind of growth they just want growth. While a sane person would say the growth should be in money so they could eventually be profitable, that's not how the markets work. So they can either show growth in the fact they're growing their customer base to include API customers and revenue streams. Or they can show growth in profits.
- starttoaster 3y agoRight, and what’s the end goal of growth? Why do companies and shareholders want to see growth? What does growth of API consumers potentially lead to? Let me make it simpler: why did Reddit start charging money for their API?