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> Where is Amazon going to suddenly start making money to justify its market cap? This question seems to be asked a lot, and I don't think people understand wh
by jmduke 14y ago
> Where is Amazon going to suddenly start making money to justify its market cap?
This question seems to be asked a lot, and I don't think people understand what they're asking. Market cap is shares times share price. That's all it is. You can use it as a proxy for net worth, but you don't have to.
- YZF 14y agoIt's what you are paying for % ownership of the business. Isn't that exactly what you should care about? If you buy a new house do you care about the "share price" or how much the house costs? If you can rent it out for $100 year would you buy it for $100B?