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Wall street undervalued Google even on day one (IPO). Bezos has said that some of the times the stock had been doing the worst were when the company was doing g
by Velorivox 1y ago
Wall street undervalued Google even on day one (IPO). Bezos has said that some of the times the stock had been doing the worst were when the company was doing great.
So, to help you understand how they can be true: market cap is governed by something other than what a business is worth.
As an aside, here's a fun article that embarrasses wall street. [0]
[0] https://www.nbcnews.com/id/wbna15536386 https://www.nbcnews.com/id/wbna15536386
- mrlongroots 1y agoHah thanks for sharing this, fun read!
- YZF 1y agoI remember sitting around the lunch table in a tech company when Google IPO'd and none of us understood the IPO valuation. I didn't buy any stocks. I also didn't get "cloud" either. Sometimes new business is essentially created out of thin air. Google and Amazon's valuation did not increase only due to their efforts, it also increased because the broader market shifted. I guess that means don't take investment advice from me ;) I've done OK buying indices though.
- ethbr1 1y agoThe fact that Wall Street sometimes misses revolutions and misvalues stocks does not mean that all perceived misvalued stocks are revolutionary. Plenty of companies have screwed up execution, and the market has correctly noticed and penalized them for that.
- ghoshbinayak 1y agoReading through this news article is hilarious. P.S. I did not have access to internet in 2006, so I guess the skepticism was normal at the time.