Is cloud computing the next tech bubble?
March 28, 2014
Grazed from MarketWatch. Author: Jeff Reeves.
Box Inc., the latest player to ride the wave of Wall Street optimism for cloud computing, just filed its S-1 this week to go public. But while the media circus around “the cloud” continues and another baby-faced 20-something CEO gets ready to ring the opening bell on Wall Street, investors need to start getting real about the current bubble in tech stocks.
Here’s a heaping helping of reality to get you started, direct from Box’s filing with the SEC: “We have a history of cumulative losses, and we do not expect to be profitable for the foreseeable future.”…
“We have incurred significant losses in each period since our inception in 2005. We incurred net losses of $50.3 million in our fiscal year ended December 31, 2011, $112.6 million in our fiscal year ended January 31, 2013, and $168.6 million in our fiscal year ended January 31, 2014. As of January 31, 2014, we had an accumulated deficit of $361.2 million.”…
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