Re:SiriusXM buys Pandora for $3.5 billion
by traek on Monday September 24, 2018 @09:45PM
(#18062929)
> As an aside: it was interesting when the stock cratered last year to the point where the market cap of the company was lower than its annual revenue -- all the revenue in the world doesn't make up for negative margins.
Yup, revenue doesn’t really mean anything; Walmart’s market cap is less than their 2017 revenue.
Of course, licensing rates means that the company only gets to see a few hundred million of that, and a significant portion of that needs to go to advertising sales personnel -- audio advertising is incredibly hands-on compared to other forms of internet advertising.
As an aside: it was interesting when the stock cratered last year to the point where the market cap of the company was lower than its annual revenue -- all the revenue in the world doesn't make up for negative margins.