Revenue Growth Stocks
Early stage revenue growth stocks live and die by their financial performance.
At its core, these companies need to sell ‘something’ for more than it costs to make that ‘something’ so that they can re-invest the cash into further growth of the business.
It doesn’t matter what the company sells, whether it is a technology product to businesses or orange juice to Coles, the principles are the same.
Make money by selling something for more than it costs to produce that something.
Early stage revenue growth stocks generally however spend more money than they make, as they look for a ‘product market fit’, which is why investors like to speculate on the future potential of a company to generate money.
Early signs of ‘product market fit’ are whether or not there is someone willing to pay for a product or service and whether the process can be ‘scaled up’ to a profit earning enterprise.
The big milestone for early stage revenue generating companies is ‘getting to operating cash flow positive’, which means that the company is self-sustainable and can re-invest that cash in further growth or product development.
In this section, you will learn about reading the company's financial statements, how to measure the company’s performance and how revenue stocks can reach ‘product market fit’.
Learn about Revenue Growth Stocks
No articles have been published for this thematic.