How do companies stay open that never pull a profit? - GoFuckYourself.com

lezinterracial · 04-02-2015, 08:39 AM

Companies like Sears and Salesforce?

Sears hasn't pulled a profit it a long time. Salesforce has a rising stock price, but hasn't pulled a profit since they were created, back in 1999.

How do they do it?

Sly · 04-02-2015, 08:54 AM

Amazon is 20 years old. Never made a penny.

mineistaken · 04-02-2015, 09:07 AM

Few of the many ways to enjoy profit without company being profitable - high salaries at the expense of profit, supplying merchandise/services to your main company at pretty high costs (all profit stays at that supplier company).

aka123 · 04-02-2015, 09:59 AM

Quote:

Originally Posted by Sly

Amazon is 20 years old. Never made a penny.

It has made few dimes.

AMZN Annual Income Statement - Amazon.com Inc. Annual Financials

TheSquealer · 04-02-2015, 10:29 AM

A better question is "why the hell should a company like godaddy be able to do an IPO in the year 2015.... Give their intense debt and having never turned a profit"

weewilly · 04-02-2015, 09:42 PM

Profit is not that important if you have a Positive Cash flow
A few non cash expenses
Writing off Goodwill
Depreciation

Also if your cash flow your overhead but the above make you lose many you can get Tax credits

Mutt · 04-02-2015, 10:24 PM

It's amazing, it's like it's a big scam run by Wall Street. If people keep buying your stock maintaining or increasing the share price then a company can just go on losing money - until the market loses faith in the company.

Spunky · 04-02-2015, 10:31 PM

Everything is a write off

sandman! · 04-02-2015, 10:56 PM

special math

epitome · 04-02-2015, 11:00 PM

Leveraged debt.
Turnaround plans you can get creditors to believe.
Lots of other ways.

Mutt · 04-02-2015, 11:10 PM

In Amazon's case it's that they keep spending and expanding, they have oodles of cash but it all goes back into the business - their end game is that one day they will have this huge customer base and they'll be spending much less and become very profitable. And up until now investors believe in the plan.

freecartoonporn · 04-02-2015, 11:41 PM

what ^^ said is correct.,

they keep building new warehouses and buying things to expand business, so they can show no profit., but in reality that is not a loss that is investment.

EliteWebmaster · 04-03-2015, 01:20 AM

Quote:

Originally Posted by Spunky

Everything is a write off

Exactly. That's just it. It's a write off for most of these corporations.

How else can you explain Pepsi buying Taco Bell, KFC, and Pizza Hut at the height of their popularity and basically running all 3 businesses into the ground. It's all about the write offs.

aka123 · 04-03-2015, 02:54 AM

Quote:

Originally Posted by Mutt

It's amazing, it's like it's a big scam run by Wall Street. If people keep buying your stock maintaining or increasing the share price then a company can just go on losing money - until the market loses faith in the company.

Well, no.. and yes. Depending what you mean. Stock price doesn't bring any money to the company itself, unless it sells its own stocks or issues new shares (that is usually based on listed stock price, but is not the same thing).

So, unless the company sells its own stocks in a way or another; it will go down without other money sources, like loaning money.

About the other issue; investing vs dividents. Theoretically it is considered that selling stocks to get money from raised stock price and dividents are the same thing as a money source, but I prefer dividents. Also in the case of large stock holders; you don't lose voting power with dividents, as it is usually vote per share (unless there is different stock series). So if you want to rule the company, dividents are always better than selling your power over the company.

aka123 · 04-03-2015, 02:58 AM

Quote:

Originally Posted by EliteWebmaster

Exactly. That's just it. It's a write off for most of these corporations.

How else can you explain Pepsi buying Taco Bell, KFC, and Pizza Hut at the height of their popularity and basically running all 3 businesses into the ground. It's all about the write offs.

And this write off benefits the company how?

pimpmaster9000 · 04-03-2015, 04:18 AM

in the USA bubble=success ...perceived value is much more important than actual value...debt=success...

Sunny Day · 04-06-2015, 06:02 PM

Any Hollywood movie that makes a profit, you're going to see fired accountants. The whole goal of a movie is not to show a profit.
My girl friend's sister loves Titanic and refused to believe me when I said they might turn a profit about the year 2075, if that soon. Movie stars know to ask for money up front, as they get screwed if they ask for a percentage of net profits, gross profits, any profits.
Just ask Mel Brooks & Gene Wilder in The Producers. Show a profit, you're fucked

TheSquealer · 04-06-2015, 07:58 PM

Quote:

Originally Posted by crucifissio

in the USA bubble=success ...perceived value is much more important than actual value...debt=success...

Well, you are from Serbia, where 3 chickens and a goat = success.

poncabare · 04-07-2015, 07:45 AM

potential

04-02-2015, 08:39 AM	#1
lezinterracial Confirmed User Industry Role: Join Date: Jul 2012 Posts: 3,064	How do companies stay open that never pull a profit? Companies like Sears and Salesforce? Sears hasn't pulled a profit it a long time. Salesforce has a rising stock price, but hasn't pulled a profit since they were created, back in 1999. How do they do it? __________________ Live Sex Shows

04-02-2015, 08:54 AM	#2
Sly Let's do some business! Industry Role: Join Date: Sep 2004 Location: Austin, TX Posts: 31,288	Amazon is 20 years old. Never made a penny. __________________ Vacares - Web Hosting, Domains, O365, Security & More - Paxum and BTC Accepted Wanted: CCBill pay sites for sale

04-02-2015, 10:29 AM	#5
TheSquealer BANNED Industry Role: Join Date: Oct 2004 Location: In Your Head Posts: 25,070	A better question is "why the hell should a company like godaddy be able to do an IPO in the year 2015.... Give their intense debt and having never turned a profit" __________________ . Yes, fewer illegal immigrants working equates to more job opportunities for American citizens. Rochard

04-02-2015, 10:24 PM	#7
Mutt Too lazy to set a custom title Industry Role: Join Date: Sep 2002 Posts: 34,431	It's amazing, it's like it's a big scam run by Wall Street. If people keep buying your stock maintaining or increasing the share price then a company can just go on losing money - until the market loses faith in the company. __________________ I moved my sites to Vacares Hosting. I've saved money, my hair is thicker, lost some weight too! Thanks Sly!

04-02-2015, 10:31 PM	#8
Spunky I need a beer Industry Role: Join Date: Jun 2002 Location: ♠ Toiletville ♠ Posts: 133,919	Everything is a write off __________________ *Skype : Spunky GFY*

04-02-2015, 09:07 AM	#3
mineistaken See signature :) Industry Role: Join Date: Apr 2007 Location: ICQ 363 097 773 Posts: 29,656	Few of the many ways to enjoy profit without company being profitable - high salaries at the expense of profit, supplying merchandise/services to your main company at pretty high costs (all profit stays at that supplier company).

04-02-2015, 09:42 PM	#6
weewilly Confirmed User Industry Role: Join Date: Jul 2012 Location: Oregon Posts: 190	Profit is not that important if you have a Positive Cash flow A few non cash expenses Writing off Goodwill Depreciation Also if your cash flow your overhead but the above make you lose many you can get Tax credits

04-02-2015, 10:56 PM	#9
sandman! Icq: 14420613 Industry Role: Join Date: Mar 2001 Location: chicago Posts: 15,432	special math __________________ Need WebHosting ? Email me for some great deals [email protected]

04-02-2015, 11:00 PM	#10
epitome So Fucking Lame Industry Role: Join Date: Jun 2009 Location: St. Petersburg, FL Posts: 12,158	Leveraged debt. Turnaround plans you can get creditors to believe. Lots of other ways.

04-02-2015, 11:10 PM	#11
Mutt Too lazy to set a custom title Industry Role: Join Date: Sep 2002 Posts: 34,431	In Amazon's case it's that they keep spending and expanding, they have oodles of cash but it all goes back into the business - their end game is that one day they will have this huge customer base and they'll be spending much less and become very profitable. And up until now investors believe in the plan. __________________ I moved my sites to Vacares Hosting. I've saved money, my hair is thicker, lost some weight too! Thanks Sly!

04-02-2015, 11:41 PM	#12
freecartoonporn Confirmed User Industry Role: Join Date: Jan 2012 Location: NC Posts: 7,683	what ^^ said is correct., they keep building new warehouses and buying things to expand business, so they can show no profit., but in reality that is not a loss that is investment. __________________ SSD Cloud Server, VPS Server, Simple Cloud Hosting \| DigitalOcean

04-03-2015, 04:18 AM	#16
pimpmaster9000 Too lazy to set a custom title Industry Role: Join Date: Dec 2011 Posts: 26,732	in the USA bubble=success ...perceived value is much more important than actual value...debt=success... __________________ Report a suspicious cracker: Click Here

04-06-2015, 06:02 PM	#17
Sunny Day Confirmed User Industry Role: Join Date: Dec 2010 Posts: 1,406	Losses Any Hollywood movie that makes a profit, you're going to see fired accountants. The whole goal of a movie is not to show a profit. My girl friend's sister loves Titanic and refused to believe me when I said they might turn a profit about the year 2075, if that soon. Movie stars know to ask for money up front, as they get screwed if they ask for a percentage of net profits, gross profits, any profits. Just ask Mel Brooks & Gene Wilder in The Producers. Show a profit, you're fucked

04-07-2015, 07:45 AM	#19
poncabare Confirmed User Industry Role: Join Date: Jul 2007 Location: carmel Posts: 2,553	potential