I think maybe you don't follow the companies closely enough. The poster you are replying to mentioned AMZN and TSLA.
Amzn's core businesses are very profitable, but they are constantly reinvesting those profits into new areas where they are growing. It's like a conglomeration of start ups, each aiming at future profit. It's like you've invested in one profitable company, and instead of dividends, you are getting shares of new start ups.
TSLA has now been profitable for 9 quarters, recently massively profitable with billions in free cash flow. Analysts are projecting even more to come, with profit margins approaching that of Apple and a total addressable market 10x the size. (I feel like TSLA is one of the few exceptions to the problems the author identifies in the article.). The TSLA bulls that I follow are all talking about future profits and how to discount those to net present value.
I agree those are profitable. Because they are actually selling something. That's a normal company. Talking more about companies which are mostly relying on increasing user count. I get that they may eventually turn a profit. But nobody talk about the profit.
Both Tesla and Amazon have never payed out a dividend. If profitable companies are not giving any money how can I expect unprofitable ones to give me money in the future?
When companies generate cash flow from profits, three major things they do with that cash are 1) pay dividends, 2) stock buybacks, 3) reinvest in the company. Shareholder's prefer the company to engage in number 3 if the company can reinvest with high ROI. If they pay the shareholders a dividend, and the shareholder can only invest that at 10%, it's ok but not as good as if the company thinks it can invest and do better.
The "plan" with these growth companies is to reinvest in themselves and keep growing as big as possible until the cost to grow is too much, or the ROI from growing is less than is generally available elsewhere. Only then will they pay dividends or do stock buybacks (which are functionally equivilant, but with favorable tax ramifications). The "plan" is that you hold for 10 or 20 years or more and then get your dividends then. Or sell at a profit sooner, because the stock will be worth more because it will be closer to that future pay day.
You can expect unprofitable companies to give you money in the future if you believe in their business plan and believe that they can execute.
Amzn's core businesses are very profitable, but they are constantly reinvesting those profits into new areas where they are growing. It's like a conglomeration of start ups, each aiming at future profit. It's like you've invested in one profitable company, and instead of dividends, you are getting shares of new start ups.
TSLA has now been profitable for 9 quarters, recently massively profitable with billions in free cash flow. Analysts are projecting even more to come, with profit margins approaching that of Apple and a total addressable market 10x the size. (I feel like TSLA is one of the few exceptions to the problems the author identifies in the article.). The TSLA bulls that I follow are all talking about future profits and how to discount those to net present value.