How do companies stay open that never pull a profit?

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  • lezinterracial
    Confirmed User
    • Jul 2012
    • 3117
    #1

    How do companies stay open that never pull a profit?

    Companies like Sears and Salesforce?

    Sears hasn't pulled a profit it a long time. Salesforce has a rising stock price, but hasn't pulled a profit since they were created, back in 1999.

    How do they do it?
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    • Sly
      Let's do some business!
      • Sep 2004
      • 31376
      #2
      Amazon is 20 years old. Never made a penny.
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        • mineistaken
          See signature :)
          • Apr 2007
          • 29656
          #3
          Few of the many ways to enjoy profit without company being profitable - high salaries at the expense of profit, supplying merchandise/services to your main company at pretty high costs (all profit stays at that supplier company).

            Comment

            • aka123
              Confirmed User
              • Jul 2014
              • 4450
              #4
              Originally posted by Sly
              Amazon is 20 years old. Never made a penny.
              It has made few dimes.

              AMZN Annual Income Statement - Amazon.com Inc. Annual Financials

                Comment

                • TheSquealer
                  Mayor of Thneedville
                  • Oct 2004
                  • 26174
                  #5
                  A better question is "why the hell should a company like godaddy be able to do an IPO in the year 2015.... Give their intense debt and having never turned a profit"
                  .
                  Yes, fewer illegal immigrants working equates to more job opportunities for American citizens.

                  Rochard

                    Comment

                    • weewilly
                      Confirmed User
                      • Jul 2012
                      • 190
                      #6
                      Profit is not that important if you have a Positive Cash flow
                      A few non cash expenses
                      Writing off Goodwill
                      Depreciation

                      Also if your cash flow your overhead but the above make you lose many you can get Tax credits

                        Comment

                        • Mutt
                          Too lazy to set a custom title
                          • Sep 2002
                          • 34431
                          #7
                          It's amazing, it's like it's a big scam run by Wall Street. If people keep buying your stock maintaining or increasing the share price then a company can just go on losing money - until the market loses faith in the company.
                          I moved my sites to Vacares Hosting. I've saved money, my hair is thicker, lost some weight too! Thanks Sly!

                            Comment

                            • Spunky
                              I need a beer
                              • Jun 2002
                              • 133986
                              #8
                              Everything is a write off

                                Comment

                                • sandman!
                                  Icq: 14420613
                                  • Mar 2001
                                  • 15431
                                  #9
                                  special math
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                                    Comment

                                    • epitome
                                      So Fucking Lame
                                      • Jun 2009
                                      • 12156
                                      #10
                                      Leveraged debt.
                                      Turnaround plans you can get creditors to believe.
                                      Lots of other ways.

                                        Comment

                                        • Mutt
                                          Too lazy to set a custom title
                                          • Sep 2002
                                          • 34431
                                          #11
                                          In Amazon's case it's that they keep spending and expanding, they have oodles of cash but it all goes back into the business - their end game is that one day they will have this huge customer base and they'll be spending much less and become very profitable. And up until now investors believe in the plan.
                                          I moved my sites to Vacares Hosting. I've saved money, my hair is thicker, lost some weight too! Thanks Sly!

                                            Comment

                                            • freecartoonporn
                                              Confirmed User
                                              • Jan 2012
                                              • 7683
                                              #12
                                              what ^^ said is correct.,

                                              they keep building new warehouses and buying things to expand business, so they can show no profit., but in reality that is not a loss that is investment.
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                                                • EliteWebmaster
                                                  Confirmed User
                                                  • Feb 2010
                                                  • 3990
                                                  #13
                                                  Originally posted by Spunky
                                                  Everything is a write off
                                                  Exactly. That's just it. It's a write off for most of these corporations.

                                                  How else can you explain Pepsi buying Taco Bell, KFC, and Pizza Hut at the height of their popularity and basically running all 3 businesses into the ground. It's all about the write offs.

                                                    Comment

                                                    • aka123
                                                      Confirmed User
                                                      • Jul 2014
                                                      • 4450
                                                      #14
                                                      Originally posted by Mutt
                                                      It's amazing, it's like it's a big scam run by Wall Street. If people keep buying your stock maintaining or increasing the share price then a company can just go on losing money - until the market loses faith in the company.
                                                      Well, no.. and yes. Depending what you mean. Stock price doesn't bring any money to the company itself, unless it sells its own stocks or issues new shares (that is usually based on listed stock price, but is not the same thing).

                                                      So, unless the company sells its own stocks in a way or another; it will go down without other money sources, like loaning money.

                                                      About the other issue; investing vs dividents. Theoretically it is considered that selling stocks to get money from raised stock price and dividents are the same thing as a money source, but I prefer dividents. Also in the case of large stock holders; you don't lose voting power with dividents, as it is usually vote per share (unless there is different stock series). So if you want to rule the company, dividents are always better than selling your power over the company.

                                                        Comment

                                                        • aka123
                                                          Confirmed User
                                                          • Jul 2014
                                                          • 4450
                                                          #15
                                                          Originally posted by EliteWebmaster
                                                          Exactly. That's just it. It's a write off for most of these corporations.

                                                          How else can you explain Pepsi buying Taco Bell, KFC, and Pizza Hut at the height of their popularity and basically running all 3 businesses into the ground. It's all about the write offs.
                                                          And this write off benefits the company how?

                                                            Comment

                                                            • pimpmaster9000
                                                              Too lazy to set a custom title
                                                              • Dec 2011
                                                              • 26732
                                                              #16
                                                              in the USA bubble=success ...perceived value is much more important than actual value...debt=success...
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                                                                Comment

                                                                • Sunny Day
                                                                  Confirmed User
                                                                  • Dec 2010
                                                                  • 1406
                                                                  #17
                                                                  Losses

                                                                  Any Hollywood movie that makes a profit, you're going to see fired accountants. The whole goal of a movie is not to show a profit.
                                                                  My girl friend's sister loves Titanic and refused to believe me when I said they might turn a profit about the year 2075, if that soon. Movie stars know to ask for money up front, as they get screwed if they ask for a percentage of net profits, gross profits, any profits.
                                                                  Just ask Mel Brooks & Gene Wilder in The Producers. Show a profit, you're fucked

                                                                    Comment

                                                                    • TheSquealer
                                                                      Mayor of Thneedville
                                                                      • Oct 2004
                                                                      • 26174
                                                                      #18
                                                                      Originally posted by crucifissio
                                                                      in the USA bubble=success ...perceived value is much more important than actual value...debt=success...
                                                                      Well, you are from Serbia, where 3 chickens and a goat = success.
                                                                      .
                                                                      Yes, fewer illegal immigrants working equates to more job opportunities for American citizens.

                                                                      Rochard

                                                                        Comment

                                                                        • poncabare
                                                                          Confirmed User
                                                                          • Jul 2007
                                                                          • 2552
                                                                          #19
                                                                          potential

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