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Old 02-04-2022, 07:51 PM
  #41  
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Oh my gosh, market cap means nothing.

uber has a $70B market cap, hasn’t turned a profit in 3 years, losing $14B over the last 2 years.

tesla made a profit for the first time this year, $5B, same as FedEx, and Tesla cap is $942B vs FedEx $66B.

ever heard of the dot com bubble? Market cap proves nothing when it comes to the fundamentals of a company. Stock market is a lot of emotion.

Myspace market capitalization was once $12B
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Old 02-05-2022, 07:08 AM
  #42  
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Originally Posted by Reese
Oh my gosh, market cap means nothing.

uber has a $70B market cap, hasn’t turned a profit in 3 years, losing $14B over the last 2 years.

tesla made a profit for the first time this year, $5B, same as FedEx, and Tesla cap is $942B vs FedEx $66B.

ever heard of the dot com bubble? Market cap proves nothing when it comes to the fundamentals of a company. Stock market is a lot of emotion.

Myspace market capitalization was once $12B
A high market cap is effective protection against a hostile takeover. The higher your market cap is relative to the value of your physical assets and cash on hand, the less attractive a takeover target you are. It also makes it cheaper to borrow. If AA’s market cap were $100B they wouldn’t be struggling to refinance their debt. Market cap is indeed partially market “emotion”, but that emotion has real world consequences.
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Old 02-05-2022, 08:39 AM
  #43  
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Originally Posted by tnkrdrvr
A high market cap is effective protection against a hostile takeover. The higher your market cap is relative to the value of your physical assets and cash on hand, the less attractive a takeover target you are. It also makes it cheaper to borrow. If AA’s market cap were $100B they wouldn’t be struggling to refinance their debt. Market cap is indeed partially market “emotion”, but that emotion has real world consequences.
In that context, agreed.
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