SpicyMamacita
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$Transcode Therapeutics(RNAZ.US$ come on where the volume?
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SpicyMamacita
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By Melody
A company's most important goal is to make money and keep it. When a company no longer has the ability to keep making money, its share price will drop significantly.
Does this mean we can only buy into companies with positive net income?
NO.
$Tesla(TSLA.US$would be a perfect example. Tesla was listed in 2009, but the company didn't break even till 2020. Not having a positive net income did not stop Tesla shares from skyrocketing. This is because the share price does not simply reflect a company's net income, but rather its profitability.
...
A company's most important goal is to make money and keep it. When a company no longer has the ability to keep making money, its share price will drop significantly.
Does this mean we can only buy into companies with positive net income?
NO.
$Tesla(TSLA.US$would be a perfect example. Tesla was listed in 2009, but the company didn't break even till 2020. Not having a positive net income did not stop Tesla shares from skyrocketing. This is because the share price does not simply reflect a company's net income, but rather its profitability.
...
![How do I measure a company's ability to make money?](https://ussnsimg.moomoo.com/16258500693082-77777015-web-fa6259a7b7c36229.png/thumb)
![How do I measure a company's ability to make money?](https://ussnsimg.moomoo.com/16258501057246-77777015-web-935cc79672bf9161.png/thumb)
![How do I measure a company's ability to make money?](https://ussnsimg.moomoo.com/16258501057385-77777015-web-3124c29d350b85d8.png/thumb)
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