Successful companies that are NOT profitable
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Here are Successful companies that are NOT profitable. Despite their popularity, these 7 companies are still losing money.
Profit is notoriously difficult to turn for businesses; most startups do not survive past the notorious 5-year mark.
While there are many companies who have been able to meet this mark, surprisingly some of them that you may know are still far in the red.
In its latest earnings results, the ride-hailing service’s chief executive, Logan Green, said that the company had made progress “on our path to profitability.” He added that Lyft would be profitable, if it excluded a bunch of costs, by late 2021.
In one of the most highly anticipated IPOs in several years, Uber (NYSE: UBER) went public in May at $45 a share, raising $8.1 billion in the process. As of 2020, it is trading around $31 a share, 32% below its IPO price and it is likely, Uber will never make money.
The company has reportedly increased its spending on marketing in the run-up to going public, something which could partially account for the increase in losses. In the first nine months of 2019, Airbnb posted a loss of $322 million which is almost double its 2018 losses.
According to cnbc.com, Bolt is now profitable — or close to being profitable — in two-thirds of its markets, CEO Markus Villig says. The company now has 1.5 million customers signed up to its app in London since launching there in May. Villig says his start-up has had “tremendous interest from investors” as it seeks a new round of funding.
- The We Company (WE)
This tech hub started in 2000, 20 years ago however the company still continues to lose money, has a nosebleed valuation and relies heavily on CEO and founder Adam Neumann is the presence of a three-class share structure that will make it virtually impossible for institutional investors to exert any pressure on the company should it continue to lose money for an extended period.
- Levi Strauss (LEVI)
One of the most culturally impactful clothing brands, the inventors of jeans as we know it, Levi’s is currently in debt and struggling to turn a profit.
Like most other startups going public, Pinterest isn’t profitable yet, but it is growing. Bloomberg estimates its valuation could be $9 billion. With over 175 billion pins and 2 billion monthly searches, the platform generated nearly $756 million in revenue in 2018.
Although these Successful companies that are NOT profitable, many of the founders may never be broke again due to their investments.
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In other money news, read more about the billionaire who went broke here
Read our article on Agribusiness investment opportunities here