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Wall St only cares about growth. If you make $100B profit two quarters in a row, that’s 0% growth and you’re dead to them. The approach makes sense with smaller
by orev 8y ago
Wall St only cares about growth. If you make $100B profit two quarters in a row, that’s 0% growth and you’re dead to them. The approach makes sense with smaller companies, but it seems to kill those who reach global dominance.
- est31 8y agoObligatory Peter Thiel statement on this (2012): https://youtu.be/2Q26XIKtwXQ?t=195 https://youtu.be/2Q26XIKtwXQ?t=195 > Google is no longer a technology company, and [...] it's basically [...] a search engine. The search technology was developed a decade ago, it's a bet that [...] no one else will come up with a better search technology so you invest in Google because you're betting against technological innovation in search, and it's like [...] a bank that generates enormous cash flows every year but you can't issue a dividend because the day you take that 30 billion and send it back to people you're admitting that you're no longer a technology company. Still relevant today.
- kmonsen 8y agoIt's also not true, Apple is paying dividends and still valued as a technology company (and both Google and Apple clearly are in tech, dividends or not).
- microtherion 8y agoAs Marc Andreessen memorably put it, Apple is valued "like a steel mill going out of business", with a PE massively lower than Google, Microsoft, Facebook, etc.