Stocks are valued by their earnings largely. A stock’s price is theoretically the current value of a long term stream of income adjusted by the risk factor aro

Stocks are valued by their earnings largely. A stock’s price is theoretically the current value of a long term stream of income adjusted by the risk factor around its growth (positive or negative). Revenue is interesting but only to the extent that it indicates earnings. This is because any two people can create two companies with a billion dollars in revenue but it is much more difficult to build one with a billion in earnings.