3 ms·
“A stock is measured at one specific time, and represents a quantity existing at that point in time (say, December 31, 2004), which may have accumulated in the
by JumpCrisscross 6mo ago
“A stock is measured at one specific time, and represents a quantity existing at that point in time (say, December 31, 2004), which may have accumulated in the past. A flow variable is measured over an interval of time. Therefore, a flow would be measured per unit of time (say a year)” [1].
Equity value is a stock metric. GDP is a flow. Put another way, Germany outputs about one NVIDIA every year. (The total value of the German stock market is about €3tn. A better comparison would be that NVIDIA and Anthropic are worth as much as all of Germany’s public equity.)
[1] https://en.wikipedia.org/wiki/Stock_and_flow https://en.wikipedia.org/wiki/Stock_and_flow
- freee3 6mo agoIndeed. When people make bad comparisons it usually indicates they have no clue what they’re talking about
- JumpCrisscross 6mo ago> When people make bad comparisons It’s not a stupid comparison. Just one that requires nuance. There is a valid observation in China and America consistently producing companies that, with tens of thousands of employees, create wealth rivaling that produced by millions of others.
- CjHuber 6mo agoI‘m glad you didn’t write value
- dxdm 6mo agoHow much of the market valuation is actually created wealth? Not something I'm used to thinking about.
- JumpCrisscross 6mo ago> How much of the market valuation is actually created wealth? Technically, all of it. Determining the socially-useful component of either production or wealth, on the other hand, is a tough and subjective exercise. (Wwrong answers are all and zero.) A useful proxy is taxable wealth. So far, NVIDIA, OpenAI and Anthropic share sales have generated tens if not hundreds of billions of dollars of taxable proceeds for the United States. Those are figures that would pay for a lot of Germany's pension problems [1]. [1] https://www.ifo.de/en/opinion/2025-10-08/hidden-multi-billion-euro-costs-germanys-pension-package#:~:text=By%202031%20the,Changes%20the%20Arithmetic. https://www.ifo.de/en/opinion/2025-10-08/hidden-multi-billio...
- gus_massa 6mo agoWhy compare the Nvidia marketcap with the GDP of Germany in one year? Why not 1 month? Why not one decade?