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Yes, that's absolutely what they write. They will always be explicit that they could be wrong in disastrous ways and they are not misleading you into thinking o
by quesera 1y ago
Yes, that's absolutely what they write. They will always be explicit that they could be wrong in disastrous ways and they are not misleading you into thinking otherwise.
Every public corp's "official stated position" on future profitability is, from a legal perspective, the same:
No promises. We might fail because of (long list of endogenous and exogenous reasons). Past performance is no guarantee of future results. We see headwinds here, here, and here. There are headwinds that we cannot see. We can't predict the future. Some hostile actor in some country, foreign or domestic, might screw us all by legal, political, or military means. Also, natural disasters, pandemics, asteroids, and trends. Don't sue us.
- troupo 1y agoThere's a difference between "we have never been profitable and don't expect to be" and, say, Google's "we became profitable, and though there are factors that can negatively affect our profitability, here's a path we believe is most profitable". In modern business profitability never enters the equation.
- quesera 1y agoBut my point is that one of those statements will exist in every filing. If the corp has never been profitable, the first. Otherwise, the second. They mean absolutely nothing about what management expects for the future of the company. They are just legal boilerplate that is always included.