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Right, of course. The claim wasn't "all companies must continue growing forever or they are bad companies / their stock will crash". It was rather "Facebook in
by School-Cotton 5y ago
Right, of course. The claim wasn't "all companies must continue growing forever or they are bad companies / their stock will crash". It was rather "Facebook in particular's current valuation is based on investors predicting it will continue to grow".
When (not if) Facebook stops growing, it will be worth _something_. Owning its stock is a bet on what that number is, and the stock price reflects the market's collective estimate.