Re:Raising Children on the Eve of AI
by Nevermark on Saturday February 17, 2024 @05:00AM
(#39408052)
Stock reflects future money flows today.
If you can sell stock, or leverage it for loans, then you get access to future profits as soon as there is a reasonable expectation they will eventually show up.
Amazon's growth model was based entirely on this effect for many years. No need for profits, company's value skyrocketed as anticipation compounded.
If you can sell stock, or leverage it for loans, then you get access to future profits as soon as there is a reasonable expectation they will eventually show up.
Amazon's growth model was based entirely on this effect for many years. No need for profits, company's value skyrocketed as anticipation compounded.