TY  - JOUR
AB  - Purpose The article introduces the authors’ “ Imagination Premium™” metric which assesses the confidence of the investing community in a business’ growth strategy.Design/methodology/approach The article explains how the Imagination Premium is calculated and applies it to several cases--Amazon, Tesla and Buffalo Wild Wings.Findings Amazon’s implied value of growth was nearly four times its value from operations, a result completely consistent with its “profits are optional” motto. Amazon is a prototypical example of a company that is built to thrive in the ‘transient advantage economy.Practical implications Sky-high expectations for growth can be dashed by external events over which businesses have little control as Tesla found out. Unless a business can show, as Amazon has historically done, that it can turn expectations into gold-spun reality, lofty investor expectations can become a liability.Originality/value By applying the Imagination Premium concept to successful and problematic cases the authors illustrate the risks and advantages of a bold growth-before-profits strategy.
VL  - 46
IS  - 2
SN  - 1087-8572
DO  - 10.1108/SL-01-2018-0005
UR  - https://doi.org/10.1108/SL-01-2018-0005
AU  - McGrath Rita Gunther
AU  - van Putten Alexander B.
AU  - Pierantozzi Ron
PY  - 2018
Y1  - 2018/01/01
TI  - Does Wall Street buy your growth story? For how long?
T2  - Strategy & Leadership
PB  - Emerald Publishing Limited
SP  - 3
EP  - 10
Y2  - 2024/04/24
ER  -