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In 2004, Google was valued at $23 billion. Other advertising companies made far more profit than Google, had more cash in the bank than Google, yet had lower v
by panarky 9y ago
In 2004, Google was valued at $23 billion.
Other advertising companies made far more profit than Google, had more cash in the bank than Google, yet had lower valuations than Google.
On that evidence, many "experts" and "analysts" said Google was grossly overvalued.
Today it's easy to see that their analysis was dead wrong. If you can figure out why the conventional wisdom then was wrong, you'll understand why Tesla stock has value today.
- xkjkls 9y agoGoogle was already profitable in 2004, and more than doubling revenues. Tesla is none of those things, and you're paying way more for it.
- Teeer 9y ago> Other advertising companies made far more profit than Google Your argument fails at that. Considering Google strictly an "advertising" company is a narrow view, even in 2004.
- panarky 9y agoIt's not my argument, it's an argument from analysts who said Google was overvalued in 2004. Apparently they couldn't imagine the future, so they measured Google against its contemporaries. Comparing Tesla to Ford is a similar failure of the imagination.