When the traditional value investor looks at the financial statements of e-commerce companies such as Flipkart, Amazon, and Snapdeal, he's forced to rub his eyes in disbelief. Even though these companies are burning cash and losing money hand over fist, they keep on spending on advertising in order to acquire new customers. This seems to defy all business logic. They are actually losing money on each order, and yet they want to acquire even more customers so that they can continue losing even more money? What business sense does that make ? When is this madness going to end? Do they ever plan to make any money? How and when ?

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