Markets are turning profitability screws on companies, says Goldman Sachs CEO

David Solomon. Picture: REUTERS/LUCY NICHOLSON

“It’s important for people to grow, but there’s got to be a clear and articulated path to profitability,” Solomon said in a Bloomberg TV interview with Matt Miller in Berlin. “I think there’s a little more market discipline coming into play.” Solomon stopped short of comparing the recent troubles in the market for IPOs to the dot-com crisis, though they underscore how, after years of ultra-loose monetary policy, markets are demanding proof that companies can make money.

When we look back on negative rates, I think when the book’s written, it’s not going to look like a great experiment“Different people will have different valuations and parameters,” Solomon said. Still, “when you run an IPO process and you get an IPO process to the point where a valuation range is set and then you are actually selling securities to investors, I don’t think it’s that hard to get to a pretty narrow range for what the market expects and where buyers and sellers can meet”.

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

McDonald's CEO Easterbrook leaves the company - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.McDonald's Corp said on Sunday that Chief Executive Steve Easterbrook was leaving the company, effective immediately, after a recent consensual relationship with an employee.
Source: SABC News Online - 🏆 32. / 51 Read more »