Looking For The Next Amazon? Here’s Why That Unicorn Probably Won’t Be

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Michelle deBoer-Jones
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One of the traits of the current bull market has been runaway valuations of tech unicorns, resulting in expensive initial public offerings of unprofitable companies. It seems investors are ever in search of the next Amazon—the next big fish that starts out bleeding piles of money but ends up being a whopping cash cow. The problem is that some investors may be assuming these unicorns will turn out like Amazon because they started out burning cash like Amazon did, but, well, you know what they say about people "assume" things.

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Michelle deBoer-Jones is editor-in-chief of Hedge Fund Alpha. She also writes comparative analyses of stocks for TipRanks and runs Providence Writing Services. Previously, she was a television news producer for eight years, producing the morning news programs for NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spending a short time at the CBS affiliate in Huntsville.