3 ms·
They've also lost $225 million in the last year. They have a $2.6B market cap but what does that mean if they still aren't making money?
by iaw 11y ago
They've also lost $225 million in the last year. They have a $2.6B market cap but what does that mean if they still aren't making money?
- wpietri 11y agoDefinitely. And that ignores the extent to which they may not be creating any value. I think they're a "games company" only in the same sense that people who make shitty video poker machines are. That is, they're not creators of fun experiences, but parasites on those inclined to addiction. Business is mainly about creating value for customers; companies that make money out proportion to the value created tend to get optimized away.
- MichaelGG 11y agoTwitter's also losing money, right? LinkedIn, despite all their tactics, makes double digit millions only? Splunk, at several billion valuation loses more and more money, too (enough that killing all R&D still wouldn't make them profitable).
- ghshephard 11y agoSplunk's revenue chart looks great: https://ycharts.com/companies/SPLK/revenues_ttm https://ycharts.com/companies/SPLK/revenues_ttm When you are still growing, the goal is to invest as much as you can in further growth. Taking profits just means you pay taxes. The only problem with losing money is if it's not the result of increasing growth (which can later be turned into much bigger profits)