Their value, as perceived by investors, is 6 times higher. You're talking about their intrinsic value while OP is listing their market value.
MS is not worth 6 times as much intrinstically, but its market value has skyrocketted under Satya Nadella, while under Ballmer it went down. This means that investors are happy with his decisions, which is only great for the company. Will this appreciation go down like a bubble (you mentioned). The answer is easy:
- If the direction stays great, it will not collapse and may grow.
- If the direction takes enough wrong turns, it will collapse or dip of course, relative to the bad decisions taken.
Idk, maybe this helped.
Thats my point.... "perceived value" is mostly just like a magic trick.
Its not real. However because enough people believe in a lie or illusion, it just keeps going.
Its like how theres more people that own gold, than there is gold in the world.
If everyone that has a claim on gold, took it back, there would be people left with their claim, on it, that couldnt get it.
And somehow the stock in gold is fine.
Its a deck of cards, build on lies (imo).
It has nothing to do with real value, or real numbers.
The fact that something can go up in price, simply because enough people by into it, is crazy.
2015 MS Annual Revenue $93,580 million USD.
2020 MS Annual Revenue $143,015 million USD.
now this is revenue and not profit.
Also inflation between 2015 and 2021 is like ~14%.
So growth is like 33% in revenue (no idea on profits).
While the company became 6 times as much worth in stocks?
Its crazy to me.
Stuff like this is what leads to bubbles in stockmarkets.
Sooner or later, enough people realise there is a issue, and things crash.
We gotta be close to a crash point, cuz that seems insane to me.
Necro-bump this 2020: http://gamrconnect.vgchartz.com/thread.php?id=229249
Bumb in 2021: http://gamrconnect.vgchartz.com/post.php?id=9047071