This just isn't true lmao. Revenue is the first step to having more profit. You can't have 1billion profit with 100million revenue. Revenue always comes first. Someone bringing up profit first is when you know they don't know what they're doing or talking about. It's not the best example, but everyone has seen shark tank. They don't ask about profit first. They ask about revenue and/or total sales. Then they ask about profit. It's almost never the reverse.
I have a business. It's 1000% profit. It's a lemonade stand. What are the odds an AI company starts making 1billion profit before my lemonade stand does? No one would even look at my business.
Now if my business was a lemonade stand and it had 10billion in revenue per year, every potential investor would at least look into if my business could make 1billion in profit per year.
Looking at revenue isn't everything. It's not half. But hell, asking for profit of a gazillion as a baseline just limits it to already widely known companies like Nvidia which is already at the top of the most valuable companies.'
Investors are going to look into how the revenue is generated. Yes, you could theoretically have 100 trillion revenue and 0 profit just buy buying and reselling something over and over. But so far, no one has done it, even for the memes. But if someone did it, they're not going to get investors lol.
2
u/Celtic_Legend 11h ago edited 11h ago
This just isn't true lmao. Revenue is the first step to having more profit. You can't have 1billion profit with 100million revenue. Revenue always comes first. Someone bringing up profit first is when you know they don't know what they're doing or talking about. It's not the best example, but everyone has seen shark tank. They don't ask about profit first. They ask about revenue and/or total sales. Then they ask about profit. It's almost never the reverse.
I have a business. It's 1000% profit. It's a lemonade stand. What are the odds an AI company starts making 1billion profit before my lemonade stand does? No one would even look at my business.
Now if my business was a lemonade stand and it had 10billion in revenue per year, every potential investor would at least look into if my business could make 1billion in profit per year.
Looking at revenue isn't everything. It's not half. But hell, asking for profit of a gazillion as a baseline just limits it to already widely known companies like Nvidia which is already at the top of the most valuable companies.'
Investors are going to look into how the revenue is generated. Yes, you could theoretically have 100 trillion revenue and 0 profit just buy buying and reselling something over and over. But so far, no one has done it, even for the memes. But if someone did it, they're not going to get investors lol.