companies that are losing money but growing

[stockmarketbeginner]

Hello,

Sometimes there are companies that are growing revenues, but still operating at a loss. It can be a new company, or an old company doing a turnaround.

How do you evaluate investing in such a company? I find it a difficult concept to invest in a company that is operating at a loss. But people do it all the time. Some companies like Tesla have never posted a profit and have been around for years. But the investment community still pays a huge price for the stock.

 

[cdcaveman]

What do you think happens when the environment these companies operate in stagnate....poof

 

[stepandfetchit]

What do you think happens when the environment these companies operate in stagnate....poof

Or, are on fire, like Amazon (works both ways). Perhaps cdcaveman's point!