for the year. Both companies are preparing to file for their initial public offerings, with Uber's IPO scheduled for as early as next month.
The 2018 IPO market was extremely receptive to money-losing firms. According to data from University of Florida professor Jay Ritter, over 80% of companies that went public in 2018 were unprofitable. The trend isn't just limited to the tech and biotech sectors, with half of all IPO companies outside of those sectors reporting negative earnings.
The experience of several examples highlighted below shows the future of such firms is hard to predict. Money-losing Amazon, which went public in 1997, went on to deliver a return of more than 1,000 times for IPO investors. Meanwhile heavily hyped companies such as Pets.com and Webvan declared bankruptcy within a few years of their IPOs as the dot-com bubble burst in 2001.
Pff... chump change...
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