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Revenue isn't earnings. A $100B market cap for a fast-growing company with ~$0 profit is definitely not "on the cheap side". But I agree that a $100B market c
by zamfi 7y ago
Revenue isn't earnings.
A $100B market cap for a fast-growing company with ~$0 profit is definitely not "on the cheap side".
But I agree that a $100B market cap for a company with ~$13B in profit is quite pessimistic. VW's future is cloudy.
- bryanlarsen 7y agoAs Amazon demonstrated quite convincingly, profit is not an appropriate number to value fast growing companies by. Tesla may or may not be another Amazon, but revenue is the best heuristic we have for any company investing so much into growth. It's not a great heuristic, but it's the best we have.