Re:Etsy stock has lost 76% of its value in 9 months
by tyre on Friday January 15, 2016 @07:13PM
(#10913359)
$150M is a large number, but so is $1b. At that burn rate they have over six years of runway.
It may be that for every $100M they spend on acquisition, they make $200M over three years in sales, in which case it would make sense to burn cash now to capture the market. They could also be going all LivingSocial: setting money on fire with no path to unicorn profitability.
Anyway, no real way to know without the inside financials.
It may be that for every $100M they spend on acquisition, they make $200M over three years in sales, in which case it would make sense to burn cash now to capture the market. They could also be going all LivingSocial: setting money on fire with no path to unicorn profitability.
Anyway, no real way to know without the inside financials.