Suddenly, the market cares if a company makes money (again)

Suddenly, the market cares if a company makes money (again)

Opinion Suddenly, the market cares if a company makes money (again) It’s amazing to think investors would ever stop caring whether a company was profitable or not, but it seems to happen every cycle, usually towards the latter stages of a long bull run. Companies with a history of reliable profits take a back seat to concept stocks, stocks with no profits but great stories and exciting visions. These stocks are usually early-stage technology companies, industry disruptors or exploratory miners. Instead of focusing on the usual hard measurements like profit and competitive advantage to pull in investors, they typically market their massive mineral deposits, revenue growth, or the huge size of their TAM (total addressable market). TAM is a particularly spurious measure which in our view often means how much …
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