For the period 2013 - 2022 Rio Tinto generated cumulative profits to the tune of $87.6 billion. In the same period Atlassian burned $2.4 billion! Not only that, but losses are getting worse. And yet ask a lot of people and they would probably see Atlassian as a growth story with more potential than Rio Tinto. However, it really shows how silly the share market can be. Rio Tinto is a powerhouse profit generator, while Atlassian has effectively done nothing. This company has been around for over 20 years, would be capital spending light and yet still can't turn a profit. Think of the capital spending a mining company like Rio does and yet it's pumping out huge profits, with the share price not actually moving a lot.
Honestly, why chase a company like Atlassian? It has done nothing to justify its share price and yet last Friday it jumped 17.2% on the back of another huge loss of $614 million. Work that out because it defies belief.
Wes Horn.
