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A comment on Tesla's market cap now accounts for roughly 1/3rd of the global automaker market. Parent comment

Re:Tesla's market cap now accounts for roughly 1/3rd of the ... by weare138 on Monday December 14, 2020 @02:43AM (#25414501)
Market capitalization is based purely on the value of the stock itself and doesn't take into account any other factors such as projections, profitability or debt. It's an odd way to value a company in my opinion and just leads to inevitable debacles like WeWork.

https://www.investopedia.com/terms/m/marketcapitalization.as...

[ Parent | on HN ]
Re:Tesla's market cap now accounts for roughly 1/3rd of the ... by simonebrunozzi on Monday December 14, 2020 @04:35AM (#25415079)
> Market capitalization is based purely on the value of the stock itself

> doesn't take into account any other factors such as projections, profitability or debt

You seem to confuse a few things here.

Explain how Amazon could ever be worth more than zero for most of its existence, then?

Price of stock is largely dependent on people willing to buy it and sell it. When more people want to buy it, the stock price generally goes up.

Why do people want to buy more than sell? Generally, it's when they think the future price will be higher. Projections, sort of.

[ Parent | on HN ]