With Rate Increases Looming, Investors Dump Shares of Money-Losing Companies

As the Federal Reserve moves closer to, investors are repricing their bets on one of the riskiest corners of the market: shares of companies that don’t make money.

, to combat burgeoning inflation. Many investors value stocks based on the present value of companies’ future earnings. When interest rates rise, eating into that future value, it becomes less appealing to make high-price bets on companies that might not be profitable for years to come. The performance of riskier growth stocks, which aim to deliver sharp profit growth in the future, also lagged behind broader indexes in the latter part of 2021. The Nasdaq CTA Internet Index, for example, has fallen about 16% from Sept. 30 through Friday. The Nasdaq Composite gained about 3.1% for the same time frame, while the S&P 500 added 8.2%.

tesla says what

Unfortunately many of those unprofitable companies have been allowed to use their unprofitable business models to undercut or squeeze out decently-run businesses.

Shopify steps up China expansion through tie-up with e-commerce giant

Better get the govt to bail out more failures like the car companies and airlines. Don't fire the people at the top screwing everyone too

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