Challenges of High Gross Margin Companies

High gross margin companies are often rewarded for growth but struggle to consistently generate profitability. The evolving trend sees technology as a fundamental part of various traditional sectors such as energy, consumer staples, consumer discretionary, materials, industrials, real estate, and utilities. Companies in these sectors with prevailing gross margin and profitability face the challenge of being refactored to align with the tech-enabled nature of their operations, similar to the early signs seen in the fintech industry.