Why Loss-making Companies Have The Greatest Profit Potential

Discussion in 'Stock Market Forum' started by longtermbull, Mar 13, 2017.

  1. longtermbull

    longtermbull Administrator Staff Member

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    This may sound like a bizarre statement but you only need to look at the recent Snap IPO to see that there can be significant demand for loss-making companies. At this moment in time nobody really knows when SnapChat will move into profit (if ever) but with large revenues, a growing customer base and potential for the future, the sky really is the limit. Well, in reality nobody really knows how far the company can go therefore any statements or projections can be supported to some extent. So, why do loss-making companies have the greatest profit potential?

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