Re:Nvidia is now worth more than Intel
by rsp1984 on Thursday July 09, 2020 @08:56AM
(#23779662)
Mind explaining what you mean by "passive cash flows" and why they became more expensive?
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MS didn’t become more valuable in a vacuum. It’s just with the pandemic hurting so many businesses the value of a stable mature company that’s still making money went up.
Re:Nvidia is now worth more than Intel
by take_a_breath on Thursday July 09, 2020 @09:34AM
(#23779967)
The price/earnings ratio went up. You are paying more for each dollar of MS profit compared to last year (which was already a high P/E ratio).
It’s another form of inflation.
Passive cash is cash that is invested relatively risk free, such as in A status government bonds.
10Y treasury rate dropped by 1 percent point this year: https://ycharts.com/indicators/10_year_treasury_rate