4 ms·
What's in for Google? Like 32B is no small sum, and I don't really understand Wiz business (product yes, business and numbers much less).
by epolanski 2y ago
What's in for Google?
Like 32B is no small sum, and I don't really understand Wiz business (product yes, business and numbers much less).
- fcantournet 2y agoI sounds insane to me number wise too. Even growth stocks have about 5x the price to revenue.
- happyopossum 2y ago> Even growth stocks have about 5x the price to revenue. A PE of 5 is not a growth stock - that’s the kind of PE you’d see on a barely surviving mid-cap in decline…. The combined PE of the S&P500 is in the low to mid 30s these days!
- TeaBrain 2y ago>A PE of 5 is not a growth stock PE is not the same as PS (price to sales or revenue). Startups and growth companies are often valued by PS since they have revenue growth, but are often not yet turning a profit (making their PE < 0).
- epolanski 2y agoRevenue and earnings are separate things. In fact price/revenue of sp500 is a disaster right now: 2.92. That means that SP500 companies on average are worth 3 times their sales!
- Reasoning 2y agoThe cloud computing market is ~$600B annually. Google has a market share of 12% in it while Amazon sits at 30% and Microsoft at 21%. I'm assuming this is Google trying to stay competitive in that market.
- epolanski 2y agoAnd they gonna get all that cloud needs through Wix? Even if they did, I just don't see the play.
- ergocoder 2y agoI'd bet, with the price tag, Amazon and MS were also looking to buy Wiz. That's why the price looks a bit outrageous. Founders previously sold their security company to microsoft as well.