Re:How This Ends
by unicornmama on Sunday May 22, 2022 @05:50PM
(#31473168)
Those companies are not immune from cutting cash burn to protect their stock price.
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They are all have very positive cash flow, so it is unlikely they will be cutting significant amount of fat.
Re:How This Ends
by unicornmama on Monday May 23, 2022 @04:01AM
(#31476391)
They are not valued on a binary positive or negative cashfows. They are valued at NPV of future cashflows. You can justify a high burn rate with the expectation of earnings in the distant future. But as inflation/rfr goes up then then investors value money today more and more and money in the future less and less.