Wall St. Leaves Money on Table for Subscription Companies

Look, we know the old truism that if you don’t have customers and profits you don’t have a business, you have a hobby. But could we please get a little balance on the profit idea? Emerging companies typically don’t declare profits because they use excess cash to fuel growth. Anything left over is plowed back into the business. If the company is public, its stock price rises not because of some magical ratio of earnings or dividends to share price, but because its reinvestments make it a more valuable entity to anyone looking at its future.

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Wall St. Leaves Money on Table for Subscription Companies

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