By using this site, you agree to our Privacy Policy and our Terms of Use. Close

The convo between greenmedic88 and endimion rocks. I'm learning so much.

I do think Apple is the stronger of the two though.

endimion, a question for you about Market Cap. You said it represents what investors think the company should sell for. But doesn't it also indirectly represent a companys size and strength (in simple terms, since they were able to achieve that high Market Cap)? Typically.

I thought that p/e was strongly correlated to Market Cap. If a company has a low p/e and is predicted to keep it for the coming few years, that will be reflected in the Market Cap (as the stock value increases).

All these companies that are infamous for being unprofitable year after year (Nokia, Sony, EA, Ubisoft, AMD), they all have low Market Caps in relation to their yearly revenue.

And vice versa. Companies with projected high profits in the coming few years have high Market Caps compared to their revenue (Apple, Google, Activision, Intel).