The Impact of Cash Burn on a Company’s Stock Performance
Just because a business does not make any money, does not necessarily mean that the stock will go down. There have been instances where companies that were initially making losses eventually turned things around and became highly profitable. A prime example of this is Amazon.com. The e-commerce giant made losses for many years after its initial public offering in 1997. However, investors who bought and held Amazon shares since 1999 would have made a fortune.
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