JRPGfan said:
Sony are probably overvalued too. |
Don't know todays value but Sony's market cap at 1st June was 130.1 billion usd
Now we shouldn't just look at the headline figures, Sony is considered a conglomerate and that's historically been seen as a black mark in investment circles terms so it negatively impacts companies share price and market cap and iirc was referred to as the conglomerate tax or something similar and was one of the main reasons why Sony's share price even against a backdrop of sustained performance continued to languish, that it did improve may mean that looking at Sony as being same old unwieldy conglomerate of yesteryear may hopefully have changed.
In MS case it's the reverse where you have it being a tech stock at a time where they are considered the future and are the darlings of the market and so are reaping the type of benefits that make those riches that were accrued by the old moustache twirling corporations that once held sway over the big end of town look paltry.
MS in the past had its market cap rise to 800 billion only to fall by 500 billion to again rise to the present value showing that the when the underlying fundamentals are right and a company isn't reliant on it's share price to help prop it up then that high share price is just a bonus. so whether One company is under or over valued is ultimately for the market to decide and those decisions are both constant and ongoing but if you have a company with solid economic foundations it should be fine.
Last edited by mjk45 - on 02 July 2021Research shows Video games help make you smarter, so why am I an idiot
