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Can someone please explain: "Square recorded a loss of roughly $100 million in 2013, broader than its loss in 2012" AND "Square would likely fetch billions o
by anandvc 12y ago
Can someone please explain:
"Square recorded a loss of roughly $100 million in 2013, broader than its loss in 2012"
AND
"Square would likely fetch billions of dollars in a sale."
How can BOTH these statements be true?
- lutusp 12y agoEasily explained. If an investor believes that a company has a bright future, the fact that it's losing money in the present may not count for anything. The investor may turn out to be wrong, but that's the reasoning. Also, because of the nature of tech investments and the volatile character of the tech business, one can invest seed money in ten companies, watch nine of them fail, and still come out ahead.
- ng12 12y agoSquare's value comes from their customers. They've cultivated a customer base that is very valuable (small and micro-businesses) and very loyal. In particular, a lot of the brick-and-mortar businesses that use Square are very trendy and technology-friendly. If Square fails to eventually find a profitable angle I'm sure a company with deep pockets and diversified interests will.