Quote:
Originally Posted by bip!
Net income is not cash flow though. Amazon always led their quarterly reports with cash flow (not income) and were very explicit and intentional on that front. They did that for a long time (like well over a decade I think) - And the cash flow was great but always being reinvested / hence poor income / but tremendous growth with huge future income (which is now current)
Ya Amazon pretty much always made a Gross profit on sales. They became the quintessential 'invest in growth story'.
- make 10 widgets profitably take all the profits and invest to expand capacity so you can make 100 widgets
- make 100 widgets profitability and so on and so on
At each stage they pretty much showed that they could make money at the current level, and that investing in growth not only resulting in more closed sales but better margins. So the 'cut, paste, repeat' process always made sense to investors.
Tesla and Uber's models are very different. More of a pure faith leap which is fine but not my type of gamble.
Quote:
Originally Posted by coordi
Yeah, even if you concede that they make fun cars, what does that have to do with them being half the value of Google or Amazon?
They just make cars
Investors in Tesla do not think they are investing in 'just a car company' from what I have seen. Most of the moonshot bets are based on what they call 'Convergence'.
Again not my bet at this valuation but if others want to gamble their money...oh well.