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I wonder if profitable means that investment must be recouped or just if your operational expenses must be compensated by your earnings. Anthropic is becoming
by jb_briant 3mo ago
I wonder if profitable means that investment must be recouped or just if your operational expenses must be compensated by your earnings.
Anthropic is becoming "profitable" while burning a series H of 69 bns usd. Does it count as profitable?
I'm curious if someone well versed in finance can answer, because from my uneducated perspective, it's not profitable to burn billions in order to make a billion.
https://www.cnbc.com/2026/05/20/anthropic-revenue-explosive-growth-ipo-profitable-quarter.html https://www.cnbc.com/2026/05/20/anthropic-revenue-explosive-...
- JumpCrisscross 3mo ago> wonder if profitable means that investment must be recouped or just if your operational expenses must be compensated by your earnings S&P requires profitability (i.e. net income) according to GAAP. That definition incorporates both ROA and operating income.
- awestroke 3mo agoEBITDA is typically used to evaluate profitability.
- JumpCrisscross 3mo ago> EBITDA is typically used to evaluate profitability S&P requires GAAP profits, i.e. net income. EBITDA is above that.