3 ms·
Current sources of value != future sources of value. The price of Google's stock is based on forward-looking prospects, not on current metrics.
by josh2600 11y ago
Current sources of value != future sources of value.
The price of Google's stock is based on forward-looking prospects, not on current metrics.
- return0 11y agoi m pretty sure its based on expected profits, or it would have flopped given the performance of all these prospects.
- fredkbloggs 11y agoActually, the price of Google's stock is based on expectations of future demand for Google's stock. It has little or nothing to do with the expectations of profits or the ability of the shareholders to receive them. This is true of all listed companies, and the more liquid their shares, the more true it is.