A loss-making company is yet to prove itself with profit, and eventually the inflow of external capital may dry up.ĭespite being in the age of tech-stock blue-sky investing, many investors still adopt a more traditional strategy buying shares in profitable companies like NVIDIA ( NASDAQ:NVDA). Sometimes these stories can cloud the minds of investors, leading them to invest with their emotions rather than on the merit of good company fundamentals. Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit.
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