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P/E is based on profit, aren't you conflating earnings and revenue? As their earnings are negative, so would be their P/E ratio.
by fizzbuzz-rs 2y ago
P/E is based on profit, aren't you conflating earnings and revenue? As their earnings are negative, so would be their P/E ratio.
- devjab 2y agoIt’s kind of hard to really calculate the P/E for OpenAI as there are more factors in it than usual. Companies like Microsoft and Nvidia likely don’t care too much about their returns considering huge parts of their investments go directly back into their own companies through sales. It’s fairly easy to invest 10B into a company which will then spend almost all of that money on your Azure services. Meanwhile giving your own co-pilot AI products able competition to avoid antitrust lawsuits.
- onlyrealcuzzo 2y agoIt's not hard to calculate P/E. You divide the price by earnings. OpenAI has negative earnings. It doesn't have a P/E.
- raincole 2y ago> OpenAI has negative earnings. And how do you know that?
- djbusby 2y agoArticle says: > they are expected to lose about $5B this year on about $3.7B of revenue
- tempusalaria 2y agoIt’s more than $5bln. That’s their adjusted loss which excludes stock based comp. Real loss is probably 8-10
- deleted 2y ago[deleted]
- devjab 2y agoFair enough. I should have worded myself better to get what I meant across, which I totally didn’t because you’re right. What I meant to say was that their current investors won’t care about the p/e.