4 ms·
Market cap is more of a measurement of hype around a tech stock rather than its actual value.
by notfromhere 10y ago
Market cap is more of a measurement of hype around a tech stock rather than its actual value.
- eridius 10y agoMarket cap is a measurement of what investors think the company's value will be after taking into account future prospects (as opposed to what its value is today without considering the future). This can occasionally lead to weird situations like companies whose market cap is less than the value of the company's assets.
- sbov 10y agoYes, and what investors think of future prospects are influenced by hype.