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A deli said to be making $35,000 in sales in said to be worth $100 million in the stock market. How does something like this happen?
Is it worth that much money somehow without the sales?
3 Answers
- babyboomer1001Lv 71 week ago
It doesn't. That sort of income could not possibly put any company on any stock market.
- Anonymous1 week ago
It is speculation.
This is brought to an extreme with large corporation like Apple for instance: $2.27 TRILLION market capitalisation, while sales are $274 billion, net income $57 billion, assets $324 billion and equity barely $65 billion. Why would someone pay $2270 for something that is worth only $65?
But going even beyond that is something like the bitcoin. Bitcoin does not have ANY asset, its value is ENTIRELY determined by how much someone else's willingness to pay $55200 to get one.