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No, it is not. Value? Price? You're confusing the matters. In corporate finance, valuation has a specific meaning. In this case, lost half of its value is corr
by fermienrico 8y ago
No, it is not. Value? Price? You're confusing the matters.
In corporate finance, valuation has a specific meaning. In this case, lost half of its value is correct; even better would be "market value".
- TuringNYC 8y agoIf we want to be really specific, hasn't only NVIDIA equity lost half the value. I'm pretty sure other portions of the capital structure are largely unblemished.
- kgwgk 8y agoA couple of billions of debt (which could be paid easily with the cash in hand) are completely irrelevant relative to the change in market cap.
- dahart 8y agoPersonally I don’t think the parent comment is confused. The stock lost half it’s value, but the company did not. Book value is the term for assets minus liabilities, so “value” without qualification tends to imply all types of value at once. The term “company value” used at the end of the article might even tend to imply more book value than market value to the average techcrunch reader. I suspect the author intended to conflate them in order to paint a picture that is more negative than the real story. He definitely conflated market value with book value when he wrote “Nvidia is proving that an otherwise strong technology business can disappear in the blink of an eye.” That line is more or less pure hyperbole.