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A couple thoughts on why this isn’t a fair comparison: - Goldman is profitable but the employees extract most of it via compensation. - Goldman has to rewin t
by mathattack 7y ago
A couple thoughts on why this isn’t a fair comparison:
- Goldman is profitable but the employees extract most of it via compensation.
- Goldman has to rewin their business every year. Very little recurring revenue and they are one recession from imploding.
- You can’t really compute valuation on a very small investment. It’s not like the entire float is trading, and the small investment (relative to valuation) can have all kinds of liquidity preferences and special rights.
- tryitnow 7y agoI think your third point supports the OP original point. Stripe probably isn't "really" worth that much now. EDIT: wanted to mention that my impression is that they're a great company, just not worth $35B.
- mathattack 7y agoThey are great. Don’t undersell the benefit of recurring revenue. Compare the valuations of credit card companies vs GS too.
- jamiegreen 7y ago- Goldman has to rewin their business every year. Very little recurring revenue and they are one recession from imploding. Haven't they weathered a fair few recessions already?
- mathattack 7y agoThey weathered the last one. Lehman and Bear didn’t.