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Google's Market Cap was around $1.4T last year. A $1.4T should generate at least 2*(10 Year Treasury Yield) or 8% or $110 Billion in profit. Else, shareholder
by deltree7 4y ago
Google's Market Cap was around $1.4T last year.
A $1.4T should generate at least 2*(10 Year Treasury Yield) or 8% or $110 Billion in profit.
Else, shareholders can simply buy 10-Year-T to earn risk-free profit.
So Google isn't generating enough profits at the current economic conditions.