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Apple's also not worth $267B. Based on the current rate that people are selling Apple stock, the demand for Apple stock makes for an equilibrium price such that

Apple's also not worth $267B. Based on the current rate that people are selling Apple stock, the demand for Apple stock makes for an equilibrium price such that Apple's market cap is $267B. But if every share of stock were up for sale, they'd have to lower the price to sell it all because there aren't an infinite number of people willing to buy Apple stock at a $267B valuation. Facebook is probably more overvalued by this because so little Facebook stock is up for sale, but it's not really fair to make this argument about Facebook without mentioning that the same issue exists for all publicly traded companies as well (save a company where all of its stock is changing hands every day).

TheCondor 16y ago
Maybe, all the shares being for sale does sort of implicated a lack of demand so the price would drop, it's a very far extreme end of the curve though. With an FB IPO and "all the shares" being for sale at once, I'd have to assume they'd go up, lot's of people seem to believe in their future. The flip side of all this valuation talk (you know, DHH had me at 'evaluation' hahahaha. that's priceless.) is that if you were to attempt to "buy" Apple, it would cost you a lot more than $267B... maybe even a trillion dollars. Does that make them worth more or less than their valuation? Don't get me wrong, there are dynamics here, it's not a static calculation.