2 ms·
Another idea uses valuation concepts. To valuate today you set up a lookahead window of say 10 years, and you sum future discounted cash flows, so sum year-x mo
by jesuslop 4y ago
Another idea uses valuation concepts. To valuate today you set up a lookahead window of say 10 years, and you sum future discounted cash flows, so sum year-x money discounted to actual-year time value of money [1], that depends on money, time, and interes rate (and sum also a terminal value). So even if cash flows projections stay similar, a discretionary upping in %5 in interests rates in a year that lingers undefinitely impact down valuations which should draw prices down (note though that this reasoning applies to all companies, not just some faang)
[1] https://www.investopedia.com/terms/t/timevalueofmoney.asp https://www.investopedia.com/terms/t/timevalueofmoney.asp