Here are the 6 famous Public Companies that still aren’t profitable.
Uber Technologies (UBER)
The biggest name in ride-sharing went public a decade later to the tune of a $75 billion valuation, making Uber one of the biggest IPOs in market history. Back in February, management announced that its plan to cut costs would bring about better margins, and therefore profits, by the end of 2020 considering all their business plans have failed.
Lyft (LYFT)
Lyft is yet another ride-hailing company that promised its investors profits ASAP, announcing in October 2019 that it would be profitable by the end of 2021. Things have changed dramatically since that announcement, but the company is sticking to its word despite a 61% decline in year-over-year revenue for the second quarter thanks to a 60% decrease in active riders.
Pinterest (PINS)
The hype behind social media stocks is usually enough to push investors into buying shares of these companies on presumed future results. Pinterest was no different during its IPO in April 2019, with no profits but a lot of promise; when it went public, Pinterest had roughly 250 million monthly active users, which is a pretty good start for a company that makes its money from internet advertising but not enough to gain them profits over the years.
Snap (SNAP)
Snap slid back into the losses during 2020, with a $96 million adjusted EBITDA loss during the second quarter. The problem isn’t users, as Snap saw its daily active user count increase an impressive 17% year over year last quarter. The problem is costs. While year-over-year revenue grew 17% last quarter, operating expenses grew 19%; meanwhile, its average revenue per user remained flat.
Zillow Group (Z)
Zillow shareholders were skeptical that the real estate website would ever reach profitability after committing to its Zillow 2.0 initiative. The idea was that not only would Zillow be a platform that provides users with so-called Zestimate and connects them with real estate agents, but it would also be a place for users to buy houses directly. “iBuying,” as this business is known, is a risky and costly proposition.
Slack Technologies (WORK)
Slack has yet to see the benefits of a work-from-home boom hit its bottom line. The company posted a net loss of $73 million in the second quarter of fiscal 2021, which is far better than the $360 million it lost in the same quarter last year.
It is very correctly said that all that glitters is not necessarily gold so you should not invest in a company because it has a big name but invest in the company that is making profits. Check other related videos here.
