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Thanks to the Chip Shortage, Texas Instruments Is Worth $170 B
- Victerius 5y agoMarket caps don't make any sense anymore. AT&T could be worth $5 billion in a year, and a toaster maker could be worth $300 billion.
- bushbaba 5y agoAtt is worth 177B TMUS is worth 150B VZ is worth 218B Rivian is worth 87B and just shipped 300 cars…total Yeah certain segments are in a bubble
- sokoloff 5y agoNikola is “worth” $4.5B and has delivered two trucks and agreed to pay $125M in SEC fines. This week and in total.
- ineedasername 5y agoIt's easy, just get someone to invest $1 in your company in return for 0.00000000001% of your company.
- dnautics 5y agoThey never made sense. They are made by calculating the price * shares in circulation. If you had to do a moment-in-time sale of the company's shares the "real" price would be the integral of all outstanding buy orders for the shares up to the total number of actual sales. So a "reasonable" valuation that "does not take into account the future of the company" would be somewhere between the two (you'd never realistically drill that far into the buy orders without more buys showing up). Of course such a synthetic measure of valuation is equally stupid as the simplistic one we use by convention.
- lotsofpulp 5y agoIt makes perfect sense as long as one is not engaging in clickbait hyperbole or twitter rage posts. No one who has thought about the calculation of the market cap metric would say it is the objective definition of “worth”, especially if you ignore share volume when comparing.
- leobg 5y agoCan you explain why simple multiplication doesn’t make sense? I mean it seems that it yields the amount of Dollars that all stock buyers have been willing to either pay or hold at. Is your point that it doesn’t make sense if only a portion of a company’s stock is free float?
- dnautics 5y ago> I mean it seems that it yields the amount of Dollars that all stock buyers have been willing to either pay or hold at. That's not how trading markets and stock prices work. The stock price is the price that the last trade occurred at (and that is usually -- but not always, especially not if the market is illiquid) between the highest buy price on currently in the market and the lowest sell price in the market. It is explicitly not the price all stock buyers have been willing to pay --only the last one.
- leobg 5y agoYes, this is true. But isn’t it also true that everyone holding a stock is making the implicit choice not to sell at the current price? To phrase it differently: If they thought their position was worth less than what they could get if they sold at the last recorded price, then they would dumb their shares. Hence the fact that they keep holding suggest that they think the current price does not yet reflect the value of the company.
- JaimeThompson 5y agoGiven the history of "interesting" choices that AT&T has made in the past decade perhaps the 5 Billion isn't all that far fetched. Perhaps, in an attempt to increase growth, they will by a major grocery chain instead of expanding their fiber deployments because we all know how spending 10's of billions of satellites and entertainment companies worked out for them.
- cushychicken 5y agoIt's weirder to me that Texas Instruments wasn't worth that much before the shortage.
- trophycase 5y agoIt was, it basically hasn't moved as long as the "chip shortage" has been a thing. Signed: someone who holds TXN stock
- bpodgursky 5y agoI do have an old TI-83+ from high school around somewhere... I wonder if the chip shortage made it a good investment.
- xxpor 5y agoSelling something based on a z80 for $100+ in the 21st century is truly an impressive feat.
- doublepg23 5y agoI do wonder why there isn't an open source graphing calculator. Unless there is? Granted, the unchanging nature of a TI calc is part of the appeal.
- tonyedgecombe 5y agohttps://www.numworks.com/resources/engineering/ https://www.numworks.com/resources/engineering/
- homarp 5y agohttps://www.numworks.com/ https://www.numworks.com/ is/was open source friendly previous discussion: https://news.ycombinator.com/item?id=28344087 https://news.ycombinator.com/item?id=28344087 https://news.ycombinator.com/item?id=27126926 https://news.ycombinator.com/item?id=27126926
- josephcsible 5y agoI'm not sure if they were ever open source friendly in the past, but they most definitely are not today. The hardware is tivoized and the source code's license is literally "all rights reserved".
- derekp7 5y agoProblem is, how do you get the non-TI calculator approved for taking tests?
- louloulou 5y ago*Thanks to the chip shortage and trillions in money printing
- Shadonototra 5y agothere, there is an explanation to all of our problems always comes down to maximizing profits, poor society..