The era of growth stocks getting a free pass on profitability appears to be largely over. Growth has slowed for many pandemic highfliers, bringing the bottom line into focus for investors. The companies that can successfully bring down costs while continuing to grow will likely be rewarded by the stock market.

Two once-unprofitable companies that have turned things around are (NYSE: UBER) and Spotify (NYSE: SPOT).

Mobility and delivery giant Uber has been producing positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for a while, but the company is now also profitable on an operating basis. Uber produced a GAAP operating profit of $172 million in the first quarter of 2024. Net income remained negative due to unrealized losses on equity investments, but the business itself is operating in the black.

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Source Fool.com