3 ms·

Market values profit, not produced value (i.e. revenue).

• bigtones 8y ago
  That's not true - see Amazon. Public markets value and price future potential profit.
  • valuearb 8y ago
    Essentially it's true, the market values each companies stream of future earnings out to infinity, discounted back for time to present day value. The market just has a big dissonance in how it estimates and discounts those future earnings. Amazon is seen as a future huge profit maker, while Apple is viewed as perpetually at risk of a large scale decline in it's recent profitability.