Possible reasons for drastic change in the net income from one year to next year?
2 Answer(s)
Binny
1. Technology companies such as FB are in investment mode for a long time.
2. If you notice even though their revenue went up by only 2x their R&D expense went up by 5x. That has a huge impact on the net income.
3. Their R&D is going up by so much because they are investing in hiring new engineers to improve the product.
Mar 16 2013 10:43 AM
2. If you notice even though their revenue went up by only 2x their R&D expense went up by 5x. That has a huge impact on the net income.
3. Their R&D is going up by so much because they are investing in hiring new engineers to improve the product.
bijay
depend on various reasons like hiring ,capex, amortization and sometime natural calamity
Mar 20 2014 05:16 PM