Would you buy a company that is making a loss but has a growing revenue? A company that provides telehealth which is the likely future of medicine. Any thoughts? - Seedly
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Anonymous

Asked on 24 Jun 2020

Would you buy a company that is making a loss but has a growing revenue? A company that provides telehealth which is the likely future of medicine. Any thoughts?

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Hello,

Why do i feel like i have read an article similar to what you are desribing hahah.

Anyways, if a company is making losses while having a growing revenue, I think you should look into why are they still having losses, is it because the company have a growing cost of sales as well (Revenue up, COGS up = Growing revenue but still loss)? Moreover, you have to ask yourself whether the business is able to scale/expand/at least reduce COGS, whether the cash flow for the business is good, whether the technical analysis is good (Is this price a good deal?) and defintely, whether do you understand the business.

I am pretty sure that there are more qualified professionals than me, but i hope i helped you hahahah.

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N
Ninja
Level 7. Grand Master
Answered on 25 Jun 2020

Did you know part of the treatment that works for mankind is to be able to physically interact with a doctor in a clinic/hospital setting. It’s a placebo effect that helps without much effort

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Andy Chan
Andy Chan
Level 5. Genius
Answered on 25 Jun 2020

If you haven't already, you should do your fundamental analysis of the company before pondering about its potential in the future. "The Neatest Little Guide to Stock Market Investing" by Jason Kelly is a beginner-friendly book that will get you started.

There are many instances of companies that were deemed to be the "likely future" of something. E.g. WeWork, the many dot-com companies in the 1990s, etc. Always take calculated risk by doing the groundwork first.

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Malvin Tan WP
Malvin Tan WP
Level 5. Genius
Answered on 25 Jun 2020

Although promising, no matter how much potential I would buy only if the price is right

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