Any example of what kind of companies have absolutely no risk of "not be able to generate sufficient revenue to achieve and maintain profitability"?
Re:Eventbrite S-1
by codingdave on Thursday August 23, 2018 @05:25PM
(#17830816)
Not a single profitable company in the world has to increase revenue to achieve profitability. By definition, they are already there. The risk faced by all companies is that poor strategic decisions will cause a decrease in revenue, eventually leading to a loss of profitability. But that is a totally different statement.
That is essentially the definition of a blue chip stock.
That simply isn't true.
There is validity to scaling while incurring losses, and requiring funding to do so. But that doesn't mean that all companies are in that boat. Certainly not all companies that are publicly traded. So the statement is a reasonable description of where the company is at, allowing potential investors to judge for themselves whether that meshes well with their own risk profile.