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Is he really using market cap to determine success? EDIT: I'm not really commenting on the rest of the article, but public perception (which is really what mar
by duaneb 14y ago
Is he really using market cap to determine success?
EDIT: I'm not really commenting on the rest of the article, but public perception (which is really what market cap is) has traditionally been a poor indicator of success. Even just recently, look at ZNGA, GRPN, AAPL ('97 or so). Amazon has 25x the market cap and operated on a 274M loss this quarter. Netflix only lost 8 million.
Of course, Amazon is interesting because- much like netflix- they are operating under the assumption that profitability will come in the long term. I find it quite interesting that investors trust Amazon (who is much older and proven) over Netflix.