How can so many big tech companies exist when they don't make a profit?

because the make a billion dollars and spend a billion dollars

lets say I have the potential to make 150 bucks per month after 10 years of getting customers, but I will lose 50 bucks per month for those 10 years. I will also tell you that once I start making 150 bucks I will probably bleed customers, but will probably be able to do it for 12 years on profit.
So........ will you invest in me?
If you see this as 2 years of 50 free bucks over a period of 27 years then you are smart. Now invest in 13 other such startups and....... you will have 50 free bucks every month.

The only bad thing here is that you need to have a lot of money in the start in order to invest and get more bucks - the rich getting richer

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22 years, not 27 - I cannot fix this now, but I wrote 27 because I was thinking of a period of 0% profit for 5 years, but did not write it.

7/10.
Would fuck.

It's all propped up on investor capital with the promise of a turning a profit as market dominator. Start ups are all running on investment from with near infinite funds in the hope that 1 in 10 of them creates a technology that can be used to further enslave the populace to their masters. If a medical break through is made in prolonging life then who do you think is first in line to reap the benefits?

I've switched to a binary scale, 0 or 1. She's a 1.

Nah she's at least an 8. I want to sniff her hair.

This guy gets it.
Turned on.

based

how do I get a gf like that?

Late Stage Capitalism.
/thread

What app or webpage is this?
They burn cash. YouTube might be fp&a fuckery, Google's a big company.

6+ feet tall, 6+ inch dick, 6+ figure salary, and also a 10/10 face, nice family history, lots of normal friends, and pure white genes.

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Can't Google count the brand name and access to data in YouTube as profits? I mean the value of that data is immensely profitable. I'm uncertain if GAAP covers assets such as this.

that's not how accounting works you dumb nigger

>pure white genes
>6 inch dick
it's on my genes to be AESTHETIC

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no they're not assets at all, they do not go on the balance sheet. brand names only go on the balance sheet as goodwill which represents the purchase value above fair market value (valued by accredited valuation companies)

how does accounting work

But like I say, that data from YouTube... Especially in an AI centric company must be worth something that's not accounted for as profits.

How is she not 10?

it's called a bubble

venture capitalism

That's what Amazon has been doing for a long time, though.
Investing all its gains in expanding more and more.

>Twitter, Twitch, Uber, and Lift have never made a profit.
???
>Google claims that Youtube has never made a profit for them.
It doesn't need to because it survives on billions from Google advertising profits. It still has value because it keeps people stuck with Google.

Yeah, but only since the end of last year though, right? It wasn't at all before then

I work in the finance department of a (smaller) tech company. Its nowhere near as big as Twitter, Twitch, etc but the fundamentals are the same, although its a B2B company selling mainly to other tech companies.

The short of it is that it's all essentially organized theft.
We don't make a profit, our customers don't turn a profit, our competitors don't make profit either. How do we pay bills? Simple: venture capital. We have a single VC sugar daddy that pumps us full of money every month for operating expenses like a good whore, or alternatively we simply borrow from our bank(s) using a revolving line of credit for emergencies or to occasionally skip our monthly VC gibs to look better in the eyes of the board of directors. Why does our VC firm continue to pump money into us? Because we could become a Facebook, or Uber, or Lyft someday; never mind that these companies don't turn a profit, their VALUATIONS are higher and thus they can borrow more money from larger VC firms and eventually retail investors. Basically its a revolving cycle of pure unadulterated jewery.

But how the fuck do the VC firms get this type of money (ie. hundreds of millions of dollars) to throw around at every fucking retarded juice presser/AI/machine learning tech startup, you might ask? Its not their money to begin with! The first rule of venture capital is that you never invest your own money. You take it from someone else, and that someone else is one of the thousands of banks in the United States that practically throw free money at these firms. And where do these banks get THEIR money? Well they fucking steal it using a tool called "fractional reserve banking" which means they can take $100,000,000 actually in the bank vaults and accounts and then declare that they actually have $10,000,000,000 in reserves that can be borrowed against, because fuck you they own the politicians and media and can get away with it.

1/2 to be continued

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this is literally how the real world works you sperg lmao @ u

2/2 continued

But wait, where do these commercial banks (Chase, Amex, etc) get that first $100,000,000? The Federal Reserve System of the United States. The Fed decides exactly how much the ratio of "real dollars" (ie. actually existing in the banks possession) to "fake dollars" (ie. what the bank really lends out) for all banks in the USA; this is called the Fed Funds rate. When a bank can't make this ratio, they can "borrow" from the Fed to meet it, which simply involves the Fed literally crediting their accounts with dollar amounts that it conjures out of thin air without expectation of being "repaid". Thus, the ultimate source of all dollars is the Federal Reserve system.

But you might ask what really determines the Fed Funds rate? For the past 45 years it been designed to cause a gradual expansion of the money supply, aka inflation, the idea being that it discourages hording wealth and increases consumption and thus stimulates the economy. This excess money is literally given out by the Fed to the banks by the aforementioned process, where it trickle downs to the tech companies; all at the expense of every good and service in the United States increasing in value every year. Why do I mention tech companies explicitly as the recipient of this? Because in the current year the favorite of the central planners and bankers is internet tech companies, like real estate in 2006 or junk bonds in 1986. Its a fad.

In the end, Twitter, Uber, Lyft, Amazon, Google etc do not really make money on their services, they make money from every goddamn thing you will ever buy. That +3% increase in your living expenses you see each year? Its Facebook stealing your fucking money, and there is no escape from it.

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I remember myspace, I had an account, never heard of friendster

Based. I can imagine it is soul-crushing to be inside that mess.

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do you think this mess is coming to the end anytime soon?

This. This is the only relevant scoring system.

>Would suck her asshole.
>Would not.

>zero tax paid

banks investing on leverage scares me
I don't know what I'm supposed to do to prepare for the rampant inflation that's going to result from this
do I hoard money and wait for the crash or do I invest it all in more stable securities asap?

You fight the system that enables this kinda bullshit. Unregulated capitalism is a scam.

Uber just had an $8 billion dollar IPO. They good.

I hope so. Software industry needs reality check.
t. software engineer

cant fight anything without resources
all I can do right now is just play around the bullshit on the table.

Vote, volunteer, talk to your friends. There's a groundswell of grassroots support that's been building for a couple of years. People are tired of getting fucked over while their bosses get bonuses.

You go to medschool and it costs $400,000, you then get a job that pays $150000 year. You're still not making profit or saving money but the revenue from your employment means you're not bankrupt.

Same shit applies for major companies. Amazon's profit margins are razor thin but now they're one of the most important companies in the world.

Which I think is fucking absurd.

What happens if Google, Amazon, Apple or essentially any company with GPS tracking data decides they want in on that taxi scheme? Uber could lose all its drivers and customers in a few months.

This

>Youtube
en.wikipedia.org/wiki/Loss_leader

>Twitter, Twitch, Uber, and Lift have never made a profit
investopedia.com/terms/l/lossleader.asp
>Loss leading is a common practice when a business first enters a market.
>The loss leader strategy is also known as penetration pricing as the manufacturer attempts to penetrate the market by pricing its products [e.g. targeted advertisments based on user data] low.
The idea for big tech, is that is is alright for them to lose money, so long as it allows them to capture an audience, then lock them in - establishing a monopoly over a particular service that consumers will eventually have no choice but to deal with their platform as they gradually crack down on speech [Twitch, Twitter] or degrade and segment the service and jack up prices [Uber, Lyft]

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its in their best interests to exaggerate the money they lose as a tax writeoff.
youtube probably does in fact pay for itself, or it would be cut loose

I can already imagine the taste of her luscious armpit.

what site is that

Lol, making a profit is such an outdated business model, grandad

instagram.com/p/BndZbZ2gmPG/?utm_source=ig_share_sheet&igshid=12g74a2il7ac9

I think this is her. cam.btbl

instagram.com/cameronbtbl/?hl=en

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Money left over that you reinvest still counts as profit.

Jesus you people are dumb

>what is tax avoidance

Can someone confirm this about Venture Capital? I don't understand these higher level things. I do remember in the Facebook movie how venture capital came in and made Facebook huge, but can that really be the case with most of them? Apple is a genuine business, isn't it? It makes money selling actual products and uses that money to build better products. Same for Microsoft, IBM, etc. Google sells advertisements, right?

Sounds like we need a good ol' recession

Yes.
18 to 24 months, at most.

>prepare for the rampant inflation

DO NOT horde money

Buy Bitcoin
Buy gold
Buy productive farming land

They sound like memes but they really aren't. Just don't be a moron and invest more than you can afford to lose, and also don't entirely discount stocks. I believe Uranium stocks are under priced right now for instance and I think they could even moon in a downturn. But really there are no stable securities in a depression, its all risk, but go for companies at the very least that actually produce products or essential services and aren't complete speculative memes.

>Unregulated capitalism

WEW LAD if you believe we live in anything even remotely free market you are fucking deluded. Our economy is nothing but state-backed oligarchies rent-seeking the fuck out of each other using the power of the state and the letter of the law.

See pic related, this is the entirety of the Code of Laws of the United States Federal Government printed out. It is roughly 100,000 pages, and it describes close to 5000 federal crimes; but nobody knows for sure as nobody has fully counted them all due to a lack of manpower on the part of the Congressional Research Service. Despite this, this is simply the very basic laws of the United States, and doesn't count the literally millions of pages of economic regulations or associated case law and their corresponding crimes and interpretation of what constitutes a crime.

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>thinking you can own things
AHAHAHA!

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It's an American thing
The most valuable companies are companies that produce nothing and which employ next to nobody

You went on long fucking tirade to explain jack shit, and somehow you included the (US) banking system which has nothing to do with anything.
Business angels and VC are just a form of financing, it doesn't have anything to do with profitability.
GAFA have plenty of ways to make actual dosh it's calles diversification, cash pooling and tax optimization and lots of shit. And in the case of GAFAs they don't need venture capital holy shit they're loaded with tons of cash like you wouldn't believe and why is that? That's because of the actual broken Capital Markets and not the Banking system.
Holy shit how did they let you into their finance dpt?

My gf

>have friends who can print you 0% interest money
>accept said money and buy your own stock with it
>???

Sorry sirs, I appear to have lost my gold in a most unfortunate boating accident.

They exist as a propaganda machine, not to make a profit

the best companies don't make any money OP

And this is why I still go on Jow Forums

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it's about control and pushing their agenda
money comes second and will even be overlooked for that
netflix survives because of it's propaganda

i don't know what's a boy and what's a girl anymore

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Sounds like we need a good ol' fucking revolution. Did you not read the section about "real estate in 2006"? Capitalism can survive recessions no problem.

who is this Creampie Queen?

you're mother

sure thing bro but you should consider having sex or something

profits get taxed, and getting taxed means you're doing your accounting wrong
can explain in more details

tiingo

capitalism is a scam.

My guess is that this enterprises by themselves don't make money, but people believe they do so when they come to stock their price skyrockets and the founders/early buyers become billionaires.
They will die eventually or become irrelevant like Yahoo.