Is there any other industry where a company can go public having lost $500,000,000 over the last 3 years?
I get it their “market share” is increasing every year and the loses are staying the same...and even that is not the full picture of a path to profit.
But if the company could turn a profit, then why not do it privately, show that and then go public? My guess like Uber and Lyft...they can’t turn a profit, and for any hope to turn profit they need this continual growth at a loss, and at some point the investors dump the bag on the public getting a return in a bubble they created and let the public fund the losses.
I think to balance the playing field with VC and private investment, companies shouldn’t be able to IPO with loses.
I get it their “market share” is increasing every year and the loses are staying the same...and even that is not the full picture of a path to profit.
But if the company could turn a profit, then why not do it privately, show that and then go public? My guess like Uber and Lyft...they can’t turn a profit, and for any hope to turn profit they need this continual growth at a loss, and at some point the investors dump the bag on the public getting a return in a bubble they created and let the public fund the losses.
I think to balance the playing field with VC and private investment, companies shouldn’t be able to IPO with loses.