Many companies like Lyft and Uber are going public without having profits - The last time this was so common was in 2000, right before the dot-com bubble burst
If this is really true, I think this is a good sign, not a bad one. If IPOs are truly now being used as a means of achieving long term stability and eventually profitability, I can’t but think...
“A lot of these companies, if they cut R&D and hiring, could be profitable,” Ritter told Recode. “But venture capital and public market investors are saying, ‘We want growth. We don’t want to focus on short-term profits.’”
If this is really true, I think this is a good sign, not a bad one.
In the meantime, these companies are using IPOs to achieve profitability. And investors seem to be willing to go along for the ride.
If IPOs are truly now being used as a means of achieving long term stability and eventually profitability, I can’t but think that’s nearly the opposite of my sense of the .com bubble, where the stereotype goes that execs and investors pushed for IPOs in order to cash out with no long term plans.
Well, venture capitalists are not necessarily the same as Wall St. Let’s also keep in mind that venture capital desiring growth, and fledgling companies being able to actually achieve sustainable...
Well, venture capitalists are not necessarily the same as Wall St. Let’s also keep in mind that venture capital desiring growth, and fledgling companies being able to actually achieve sustainable growth are not the same.
Hope you're patient. Bezos began Amazon in 1994. The company's first profit was in 2003. Meanwhile, thedotcom bubble devastated so many others. I think we look at companies like Amazon through the...
Hope you're patient. Bezos began Amazon in 1994. The company's first profit was in 2003. Meanwhile, thedotcom bubble devastated so many others. I think we look at companies like Amazon through the lens of survivorship bias. Also their business practices helped.
From Wikipedia:
In 2000, U.S. toy retailer Toys "R" Us entered into a 10-year agreement with Amazon, valued at $50 million per year plus a cut of sales, under which Toys "R" Us would be the exclusive supplier of toys and baby products on the service, and the chain's website would redirect to Amazon's Toys & Games category. In 2004, Toys "R" Us sued Amazon, claiming that because of a perceived lack of variety in Toys "R" Us stock, Amazon had knowingly allowed third-party sellers to offer items on the service in categories that Toys "R" Us had been granted exclusivity. In 2006, a court ruled in favor of Toys "R" Us, giving it the right to unwind its agreement with Amazon and establish its own independent e-commerce website. The company was later awarded $51 million in damages.[18][19][20]
In 2001, Amazon entered into a similar agreement with Borders Group, under which Amazon would co-manage Borders.com as a co-branded service,[21] Borders pulled out of the arrangement in 2007, with plans to also launch its own online store.[22]
On October 18, 2011, Amazon.com announced a partnership with DC Comics for the exclusive digital rights to many popular comics, including Superman, Batman, Green Lantern, The Sandman, and Watchmen. The partnership has caused well-known bookstores like Barnes & Noble to remove these titles from their shelves.[23]
In November 2013, Amazon announced a partnership with the United States Postal Service to begin delivering orders on Sundays. The service, included in Amazon's standard shipping rates, initiated in metropolitan areas of Los Angeles and New York because of the high-volume and inability to deliver in a timely way, with plans to expand into Dallas, Houston, New Orleans and Phoenix by 2014.[24]
In June 2017, Nike confirmed a "pilot" partnership with Amazon to sell goods directly on the platform.[25][26][27]
As of October 11, 2017, AmazonFresh sells a range of Booths branded products for home delivery in selected areas.[28]
In September 2017, Amazon ventured with one of its sellers JV Appario Retail owned by Patni Group which has recorded a total income of US$ 104.44 million (₹ 759 crore) in financial year 2017–18.[29]
In November 2018, Amazon reached an agreement with Apple Inc. to sell selected products through the service, via the company and selected Apple Authorized Resellers. As a result of this partnership, only Apple Authorized Resellers may sell Apple products on Amazon effective January 4, 2019.[30][31]
If this is really true, I think this is a good sign, not a bad one.
If IPOs are truly now being used as a means of achieving long term stability and eventually profitability, I can’t but think that’s nearly the opposite of my sense of the .com bubble, where the stereotype goes that execs and investors pushed for IPOs in order to cash out with no long term plans.
That sounds so counter to what you hear about the attitudes of people in Wall St. That is, people say investors only care about the quarterly results.
Well, venture capitalists are not necessarily the same as Wall St. Let’s also keep in mind that venture capital desiring growth, and fledgling companies being able to actually achieve sustainable growth are not the same.
Thats true, but the quote mentioned public market investors which is generally synonymous with wall st.
Hope you're patient. Bezos began Amazon in 1994. The company's first profit was in 2003. Meanwhile, thedotcom bubble devastated so many others. I think we look at companies like Amazon through the lens of survivorship bias. Also their business practices helped.
From Wikipedia:
In 2000, U.S. toy retailer Toys "R" Us entered into a 10-year agreement with Amazon, valued at $50 million per year plus a cut of sales, under which Toys "R" Us would be the exclusive supplier of toys and baby products on the service, and the chain's website would redirect to Amazon's Toys & Games category. In 2004, Toys "R" Us sued Amazon, claiming that because of a perceived lack of variety in Toys "R" Us stock, Amazon had knowingly allowed third-party sellers to offer items on the service in categories that Toys "R" Us had been granted exclusivity. In 2006, a court ruled in favor of Toys "R" Us, giving it the right to unwind its agreement with Amazon and establish its own independent e-commerce website. The company was later awarded $51 million in damages.[18][19][20]
In 2001, Amazon entered into a similar agreement with Borders Group, under which Amazon would co-manage Borders.com as a co-branded service,[21] Borders pulled out of the arrangement in 2007, with plans to also launch its own online store.[22]
On October 18, 2011, Amazon.com announced a partnership with DC Comics for the exclusive digital rights to many popular comics, including Superman, Batman, Green Lantern, The Sandman, and Watchmen. The partnership has caused well-known bookstores like Barnes & Noble to remove these titles from their shelves.[23]
In November 2013, Amazon announced a partnership with the United States Postal Service to begin delivering orders on Sundays. The service, included in Amazon's standard shipping rates, initiated in metropolitan areas of Los Angeles and New York because of the high-volume and inability to deliver in a timely way, with plans to expand into Dallas, Houston, New Orleans and Phoenix by 2014.[24]
In June 2017, Nike confirmed a "pilot" partnership with Amazon to sell goods directly on the platform.[25][26][27]
As of October 11, 2017, AmazonFresh sells a range of Booths branded products for home delivery in selected areas.[28]
In September 2017, Amazon ventured with one of its sellers JV Appario Retail owned by Patni Group which has recorded a total income of US$ 104.44 million (₹ 759 crore) in financial year 2017–18.[29]
In November 2018, Amazon reached an agreement with Apple Inc. to sell selected products through the service, via the company and selected Apple Authorized Resellers. As a result of this partnership, only Apple Authorized Resellers may sell Apple products on Amazon effective January 4, 2019.[30][31]