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Amazon market cap 1.732T Google market cap 1.89T Microsoft market cap 2.289T Cloudflare market cap 55.86B Who do you expect to provide competition to Amazon

by dfdz 5y ago

Amazon market cap 1.732T Google market cap 1.89T Microsoft market cap 2.289T Cloudflare market cap 55.86B Who do you expect to provide competition to Amazon/Google/Microsoft for egress pricing if not smaller company who is a "leading CDN provider" ? Your comment seems to be justifying why Cloudflare is ideally suited to provide competition against the big 3 cloud providers with its R2 offering ...

johnday 5y ago
Why would you think that a company's market cap (not only the relevant portion of the business, but the entire company) is a reasonable marker for how big of a player they are inside of this part of the industry? Heck, market caps at this point are almost entirely untethered from reality. {cf. Tesla}
- ant6n 5y ago
  It seems cloudflare makes about 500M in revenue. So their price/revenue is like 100, ouch. The market seems to believe cloudflare will do very well.
- robocat 5y ago
  Market cap is a reasonable proxy measure for how much money those companies can bring to bear to win the market (especially if losses[1]), should those companies decide that competing is a number one priority. Two examples from Microsoft: XBox (worked) and Windows Phone (failed). Revenues or profits in the cloud market for each company are mostly a measure of how much they are winning. How much they are spending is a measure of how much they are trying to compete, and the amount they can spend is also dependent on profits in other areas of their respective business. > Heck, market caps at this point are almost entirely untethered from reality Most stocks have some basis in reality, and relative value still matters even if you think the whole market is in Lala land. The stocks mentioned are not diamondhand stocks. Variation in valuation is not hitting two orders of magnitude, which is what we have here. A better measure might be some gross profitability figure for each company that measures how much each company can pump into competing (expenses), but that is hard to calculate, especially for Amazon. [1] Google Cloud Losses Shrink 59%, Revenue Hits $4.6B https://www.sdxcentral.com/articles/news/google-cloud-losses-shrink-59-revenue-hits-4-6b/2021/07/ https://www.sdxcentral.com/articles/news/google-cloud-losses... Edited: added second paragraphs.
thefounder 5y ago
Market cap. has little meaning nowadays especially in tech. It's just a pumped-up number. You could talk about revenue but that's a different discussion.
- dfdz 5y ago
  Revenue for 2020: Amazon 386B USD Google 183B USD Microsoft 143B USD Cloudflare 431M USD Similar story ...

by dfdz 5y ago

johnday 5y ago

Why would you think that a company's market cap (not only the relevant portion of the business, but the entire company) is a reasonable marker for how big of a player they are inside of this part of the industry? Heck, market caps at this point are almost entirely untethered from reality. {cf. Tesla}

ant6n 5y ago
It seems cloudflare makes about 500M in revenue. So their price/revenue is like 100, ouch. The market seems to believe cloudflare will do very well.
robocat 5y ago
Market cap is a reasonable proxy measure for how much money those companies can bring to bear to win the market (especially if losses[1]), should those companies decide that competing is a number one priority. Two examples from Microsoft: XBox (worked) and Windows Phone (failed). Revenues or profits in the cloud market for each company are mostly a measure of how much they are winning. How much they are spending is a measure of how much they are trying to compete, and the amount they can spend is also dependent on profits in other areas of their respective business. > Heck, market caps at this point are almost entirely untethered from reality Most stocks have some basis in reality, and relative value still matters even if you think the whole market is in Lala land. The stocks mentioned are not diamondhand stocks. Variation in valuation is not hitting two orders of magnitude, which is what we have here. A better measure might be some gross profitability figure for each company that measures how much each company can pump into competing (expenses), but that is hard to calculate, especially for Amazon. [1] Google Cloud Losses Shrink 59%, Revenue Hits $4.6B https://www.sdxcentral.com/articles/news/google-cloud-losses-shrink-59-revenue-hits-4-6b/2021/07/ https://www.sdxcentral.com/articles/news/google-cloud-losses... Edited: added second paragraphs.

thefounder 5y ago

Market cap. has little meaning nowadays especially in tech. It's just a pumped-up number. You could talk about revenue but that's a different discussion.

dfdz 5y ago
Revenue for 2020: Amazon 386B USD Google 183B USD Microsoft 143B USD Cloudflare 431M USD Similar story ...