Originally Posted by
racedo
There is little correlation between Stock Market perfromance and Profitability.
How much does Lyft make in profit ? How much is it worth ?
While stock market investors are not 100% rational, over a long enough time frame they get it reasonably right. The share price trajectory is totally rational, the absolute value of the shares is still debatable.
What is going to change in Norwegian’s short term to allow them to become profitable?
Do they have any specific reasons to expect strong yield growth? (ie failure of competitors or large increase in demand)
If not, is there a reasonable expectation that they are going to dramatically reduce their cost base? Still no?
I am genuinely interested to find out what I am missing here.
The product is very polished and professional, but the inconvenient truth is that it costs the shareholders a stack of money every time one of their aircraft pushes back from the gate.