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Market cap is just speculative pricing, the grand illusion of wealth. Then, there is investment banking advice, which is still speculative. The real value is on
by hugoromano 2y ago
Market cap is just speculative pricing, the grand illusion of wealth. Then, there is investment banking advice, which is still speculative. The real value is only confirmed when a transaction occurs.
- aeternum 2y ago>real value is only confirmed when a transaction occurs Market cap is based on the last transaction that occurred. Are you saying it's speculative until the entire company is purchased?
- satvikpendem 2y agoOr until it IPOs. I can make a company be "worth" one trillion dollars if I sell one trillionth of my shares for one dollar.
- aeternum 2y agoBut this is how public company market caps are also valued. No one is buying/selling all of nvda.
- s1artibartfast 2y agoyes. It is only the opinion of the last buyer and for part of the company. It may or may not translate to a total price. Ill offer you $1 for 0.000,001 stake in your HN account. That doesnt mean someone else will buy the whole thing for $1M. Valuations in general are moving estimates.
- mu53 2y agoI think the real scheme behind these companies was to monopolize the restaurant industry the way that uber has monopolized the taxi industry. 7.3B makes sense if you hold 40% of the restaurant business across the US. Build out delivery network for existing restaurants, capture all of their order data, use that data to create ghost kitchens to sap business, ghost kitchens can turn into full restaurants, and continue as far as you could.
- voxic11 2y agoThe 7.3 billion dollars figure doesn't come from market cap. It was the price that Just Eat actually paid to purchase the entirety of GrubHub 4 years ago. So it wasn't speculative, someone actually paid it in full.