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Maybe businesses don't need revenue streams. I wonder by how much the Moonshot program, increased Google's Market Cap.
by petra 6y ago
Maybe businesses don't need revenue streams. I wonder by how much the Moonshot program, increased Google's Market Cap.
- ChuckMcM 6y agoThis is a fair question. After all, an increase in market cap means, as execs, you're paper wealth is that much greater. The challenge is that market cap isn't durable. Specifically businesses that just provide net revenue, even if it is only a "small" amount relative to the overall company, are helpful in mitigating shocks to the market. So it may be intoxicating that the stock going up 10% adds a few billion dollars to your net worth, but it can also go down 10 or 20% and that wealth goes poof![1] [1] The reality is that paper wealth is not worth anything, only after it has been diversified can you really count it as part of your net worth. Again, this is my lived experience :-).
- petra 6y agoThe Moonshot program created a lot of optimism about Google for many years. Over that long time, I'm sure there are benefits for the executives' personal stock(don't CEO's diversify every few years?) , and for Google in general(for ex. Better talent).