Firstly please read this:
The rise of tech titanAmazonshows just that: Investors are keen on a new business model.
Despite being light on profits,Amazon is the world’s second most valuable companyby market cap. That has made its founderJeff Bezos the richest man in modern history, with a net worth of more than $150 billion.
Investors love Amazon’s stocks, but the company’s total profit for the past two decades pales in comparison to other highly valued companies in the U.S.
According to Thomson Reuters data, Amazon’s profits for the last 20 years total less than $8 billion while Apple recorded profits of about $327 billion during the same period, and Facebook made $37 billion in the last decade.
In fact, the market’s euphoria for so-called “growth companies” made billionaire hedge fund manager David Einhornquestion if classic investing principles that worked for himstill make sense today.
In an investor note last year, Einhorn cited his bets againstTeslaandAmazon, and wrote that the market is “very challenging for value investing strategies, as growth stocks have continued to outperform value stocks.”
“What if equity value has nothing to do with current or future profits and instead is derived from a company’s ability to be disruptive, to provide social change, or to advance new beneficial technologies, even when doing so results in current and future economic loss?”
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Now you should know why people invest in GROWTH rather than PROFIT.
If you are a credit card holder like VC/MC, and if you make one big purchase every year let's saying $3000.
After the SPT API with VC/MC later (hopefully in the coming months as advised by CEO), I don't think you will refuse using SPT 6 installments to pay off that $3000 purchase for financial relief, oh yes you might refuse that if you don't care.
Then you can work out with totally nearly 1B VC/MC holders in the world, tell me what you think?
