I'll never understand what market cap has to do with company size. Stock prices are basically an arbitrary value mostly determined by how much people buying stock think the stock is worth, are they not?
Correct me if I'm wrong but theoretically an overhyped two man operation running at a financial loss could generate the same market cap as a much larger company with massive profits? As I understand it, the only somewhat tangible factor is the actual money in the company which again can be bloated by overeager investors.
I'm not being facetious, I'm genuinely curious about the rationale.
Correct me if I'm wrong but theoretically an overhyped two man operation running at a financial loss could generate the same market cap as a much larger company with massive profits? As I understand it, the only somewhat tangible factor is the actual money in the company which again can be bloated by overeager investors.
I'm not being facetious, I'm genuinely curious about the rationale.