companies that are losing money but growing

Discussion in 'Stocks' started by stockmarketbeginner, Nov 24, 2017.

  1. Hello,

    Sometimes there are companies that are growing revenues, but still operating at a loss. It can be a new company, or an old company doing a turnaround.

    How do you evaluate investing in such a company? I find it a difficult concept to invest in a company that is operating at a loss. But people do it all the time. Some companies like Tesla have never posted a profit and have been around for years. But the investment community still pays a huge price for the stock.
     
  2. What do you think happens when the environment these companies operate in stagnate....poof
     
  3. Or, are on fire, like Amazon (works both ways). Perhaps cdcaveman's point!
     
    cdcaveman likes this.