The Race to Profitability

from the who-will-get-there? dept

Since investors have suddenly discovered the concept of profitability as a metric for dot com companies, has put together some funky “race graphics” that show which companies are close to switching from red ink to black. They are smart in that they look cash flow from operations to try to determine distance from profitability. The problem is that investors tend to only look at the extremes, and when they only look at profitability they can certainly miss out on some good companies that will take some real investment to grow even bigger.

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