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Being profitable isn't the same as sustainable. Even a simple shop isn't profitable for months if it needs to buy stock up front, and run some ads to let peopl
by nl 7mo ago
Being profitable isn't the same as sustainable.
Even a simple shop isn't profitable for months if it needs to buy stock up front, and run some ads to let people know about it. The money for that comes from the shop owners as an investment.
This is the same thing but on a slightly bigger scale, over a longer time frame.
- troupo 7mo agoIf your shop is unprofitable for years with no chance to recoup any of the costs, you close it, as your investments run out, and investors and banks stop giving you money as you keep losing them. US tech companies just continue operating because "revenue and growth".
- cindyllm 7mo ago[dead]
- nl 7mo ago> US tech companies just continue operating because "revenue and growth". US tech companies are some of the most profitable business in history. Google made over $130B profit last year, Meta 60B. I'm old enough to have had exactly the same arguments (on Slashdot for Google, here for FB) for both before their IPOs. It's a uninformed argument and people should know better.