Re:Meta to Layoff 10k Employees
by lotsofpulp on Tuesday March 14, 2023 @11:55AM
(#35153555)
The market compared their potential during the 2010s, because everyone was growing by leaps and bounds and the sky was the limit. There is clearly no reason to do that now.
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Plot the graph again but instead of comparing them to Apple and Netflix try comparing them to Johnson & Johnson and Porche.
As a follow on point to my other reply comment on review, the comparable stock on that list is Google - and the graph probably shows that the market actually underestimated Meta's 'potential' compared to Google.
2010 Meta 'Potential' vs 2010 Google 'Potential' - c$50bn vs c$200bn
2022 Meta 'Potential' vs 2022 Google 'Potential' - c580bn vs c$800bn
Meta grew >10x across the period, while Google grew c4x
I don't personally buy that Market Cap = Potential, but you would be twice as rich if you invested in Meta according to that graph than if you invested in Google, and you would have also done better investing in Meta across that period than Apple according to the graph you sent across.
Re:Meta to Layoff 10k Employees
by lotsofpulp on Wednesday March 15, 2023 @09:56AM
(#35168392)
You would have to take into account stock splits and dividends. According to DQDYJ total return calculator:
https://watch.dqydj.com/timeseries/stock-calculator/
From May 21, 2012 (when META went public) to now, here are the annual returns:
MSFT - 24.53%
AAPL - 22.99%
AMZN - 22.07%
GOOGL - 18.09%
META - 14.36%