How do these tech companies continue operating at a loss every year? Net loss for these companies reach hundreds of millions yet they are still operating till this day
In: Economics
You run on investments from others until you make enough money to pay them back. The idea is that as an investor you believe that the company will eventually make a lot of money, giving you a good return on investment.
Amazon was set up like this, it grew rapidly costing way more money than Amazon was making. Investors would pay Amazon so that it could keep growing, believing eventually it will turn over a lot of profit.
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