Napkin maths.
Alphabet: ~$4.5T value / ~$403B revenue ≈ 11× revenue
Microsoft: ~$2.9T value / ~$282B revenue ≈ 10× revenue
OpenAI: ~$850B value / ~$13B revenue ≈ 65× revenue
Can someone explains that logic?
Alphabet: ~$4.5T value / ~$403B revenue ≈ 11× revenue
Microsoft: ~$2.9T value / ~$282B revenue ≈ 10× revenue
OpenAI: ~$850B value / ~$13B revenue ≈ 65× revenue
Can someone explains that logic?
Should these companies be valued the same?
By who? Public money is looking for dividends (profits) not growth?
Amazon has ~10 Billion outstanding shares and the current market price for one of those shares is ~$240.
If folks only care about dividends, why would anyone buy an Amazon share at that price?
You'd hope every publicly-traded long term minded company operates the same way Amazon does. Reinvestment of money they themselves earn in "growth" and still retain a trickle in profits.