Comment by lotsofpulp
Comment by lotsofpulp 5 days ago
> Management is asking Wall Street to allow them to make this huge investment (in their own salaries and R&D empire), and they need to promise a corresponding huge return. Wall Street always opportunities to jack up profits in the short term, and management needs to tell a compelling story about ROI that is a few years in the future to convince them it’s worth waiting
Explain Amazon, Uber, Spotify, Tesla, and other publicly listed businesses that had low or even negative profit margins for many years.
The idea that Wall Street only rewards short term profit margins is laughable considering who is at the top of the market cap rankings.
The section of my comment you quoted directly addresses this! Wall Street can be convinced by a compelling story.