4 ms·
Stock market valuations take into account expectations, and this clearly met the market's expectations.
by polarix 13y ago
Stock market valuations take into account expectations, and this clearly met the market's expectations.
- stanmancan 13y agoI'm still confused by this though. Their market cap right now is about 1.5 billion. If GTA 5 sold $1 billion in 3 days, does that mean their whole valuation is based on this one single game??
- haldujai 13y agoValuation includes liabilities and is generally focused on profits not revenue (Amazon excepted). Take-two ended up losing 32 million last year on 1.2 billion in revenue. Take-two had a relatively large run up in July/August likely meaning that optimistic interpretations of GTA V were already priced in meaning people already factored the higher than normal profits this year.