Re:Nvidia to Acquire Mellanox for $6.9B
by bigtones on Monday March 11, 2019 @11:09AM
(#19359496)
That's not true - see Amazon. Public markets value and price future potential profit.
[ Parent
| on HN ]
Essentially it's true, the market values each companies stream of future earnings out to infinity, discounted back for time to present day value.
The market just has a big dissonance in how it estimates and discounts those future earnings. Amazon is seen as a future huge profit maker, while Apple is viewed as perpetually at risk of a large scale decline in it's recent profitability.