I never said yearly. I said total profits. If you want to be technical about it, sum of discounted future profits.
People in this thread are also confusing revenue, gross income, and net income.
People in this thread are also giving other companies, but those may be overvalued as well. Companies have a finite (if long) lifespan. If market cap is more than total discounted future income, it's overvalued. If it's less, it's undervalued. It's just a question of when the market corrects.
You didn't say "total profits", you said "profit" which in the context of business financials is traditionally measured quarterly or yearly. Anyway, as I pointed out, they already make $9 per person on Earth per year. If they make that for 20 years without growing at all, that's $180 per person which isn't too far off from your $250. Of course you'll say that's unlikely, to which I agree. Their revenue is currently growing, which I think will continue for a few years at least. It will likely fall someday, but even in that case I think it's not unlikely that they could make your $250 per person in profit before that. And they could make much more in a bull case where they figure out how to leverage their AI stuff.
Of course it's also possible that growth stalls next year, the stock tanks and the company goes under in short order. If you believe that then short the stock, you stand to make a fortune.
If I had infinite dollars and an infinite lifespan, I would. As is, my wallet isn't likely to be able to keep to with an irrational market, and my risk tolerance curve is very conservative.
Unless I hit jackpot, mo shorts for me (in general, not just Google)!
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I never said yearly. I said total profits. If you want to be technical about it, sum of discounted future profits.
People in this thread are also confusing revenue, gross income, and net income.
People in this thread are also giving other companies, but those may be overvalued as well. Companies have a finite (if long) lifespan. If market cap is more than total discounted future income, it's overvalued. If it's less, it's undervalued. It's just a question of when the market corrects.
You didn't say "total profits", you said "profit" which in the context of business financials is traditionally measured quarterly or yearly. Anyway, as I pointed out, they already make $9 per person on Earth per year. If they make that for 20 years without growing at all, that's $180 per person which isn't too far off from your $250. Of course you'll say that's unlikely, to which I agree. Their revenue is currently growing, which I think will continue for a few years at least. It will likely fall someday, but even in that case I think it's not unlikely that they could make your $250 per person in profit before that. And they could make much more in a bull case where they figure out how to leverage their AI stuff.
Of course it's also possible that growth stalls next year, the stock tanks and the company goes under in short order. If you believe that then short the stock, you stand to make a fortune.
If I had infinite dollars and an infinite lifespan, I would. As is, my wallet isn't likely to be able to keep to with an irrational market, and my risk tolerance curve is very conservative.
Unless I hit jackpot, mo shorts for me (in general, not just Google)!