Distorted Valuations?
Facebook - GE
Today's headline... Facebook's market capitalization has overtaken that of General Electric. The social network's 26% climb this year has brought its market value to $275B, compared to GE's $273B.
Some are expressing concerns: GE racked up $149B in sales last year and employed more than 300,000 people. Facebook reported $12.5B in sales and employed roughly 9,200.
More absurdity...
GE stock $25.79; YTD +2%; market value $265B; PE 212; price/sales 1.72; annual revenue $149B; annual profit $15B; employees 307K.
Facebook stock $96.39; YTD +23%; market value $272B;
PE 93; price/sales 16.67; annual revenue $12.5B; annual profit $3B; employees 9.2K
TESLA - General Motors
TESLA stock $264; YTD +19%; market value $34B; PE NA; price/sales 8.66; annual revenue $3B; annual profit -$300M; employees 3K; 2014 32K vehicles sold
General Motors stock $31; YTD -11%; market value $50B; PE 14.4; price/sales 0.38; annual revenue $155B; annual profit $4B; employees 216K; 2014 9.92M vehicles sold
Amazon - WalMart
Amazon stock $536; 2015 YTD +72%; market value $224B; PE NA; price/sales 1.61; annual revenue $89B; annual profit -$241M; employees 154K
WalMart stock $71.63; 2015 YTD -17%; market value $235B; PE 14.7; price/sales 0.57; annual revenue $486B; annual profit $16.4B; employees 2.2M
We Natter... Despite questionable valuations these opportunities make boatloads of money in today's market. Perhaps, a casino or house of cards? As many say manipulated, as I say, contrived and there is no such thing as a free market.
Today's headline... Facebook's market capitalization has overtaken that of General Electric. The social network's 26% climb this year has brought its market value to $275B, compared to GE's $273B.
Some are expressing concerns: GE racked up $149B in sales last year and employed more than 300,000 people. Facebook reported $12.5B in sales and employed roughly 9,200.
More absurdity...
GE stock $25.79; YTD +2%; market value $265B; PE 212; price/sales 1.72; annual revenue $149B; annual profit $15B; employees 307K.
Facebook stock $96.39; YTD +23%; market value $272B;
PE 93; price/sales 16.67; annual revenue $12.5B; annual profit $3B; employees 9.2K
TESLA - General Motors
TESLA stock $264; YTD +19%; market value $34B; PE NA; price/sales 8.66; annual revenue $3B; annual profit -$300M; employees 3K; 2014 32K vehicles sold
General Motors stock $31; YTD -11%; market value $50B; PE 14.4; price/sales 0.38; annual revenue $155B; annual profit $4B; employees 216K; 2014 9.92M vehicles sold
Amazon - WalMart
Amazon stock $536; 2015 YTD +72%; market value $224B; PE NA; price/sales 1.61; annual revenue $89B; annual profit -$241M; employees 154K
WalMart stock $71.63; 2015 YTD -17%; market value $235B; PE 14.7; price/sales 0.57; annual revenue $486B; annual profit $16.4B; employees 2.2M
We Natter... Despite questionable valuations these opportunities make boatloads of money in today's market. Perhaps, a casino or house of cards? As many say manipulated, as I say, contrived and there is no such thing as a free market.
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