1) Because members of the public think that the company will succeed in becoming profitable. 2) Because if you can get 10% profit on your $1B in revenue, that'

1) Because members of the public think that the company will succeed in becoming profitable. 2) Because if you can get 10% profit on your $1B in revenue, that's $100M, on $30M it's $3M. Investment is always about looking towards the future, and predicting how well the company will do.