Market cap is just share price times the number of shares. Can potentially be completely divorced from how well your company is actually doing. Conversely, a drop or rise in market cap doesn’t have to mean your company is doing better or worse. If you’re selling shovels, you still have the money when the music stops.
Market cap is just share price times the number of shares. Can potentially be completely divorced from how well your company is actually doing. Conversely, a drop or rise in market cap doesn’t have to mean your company is doing better or worse. If you’re selling shovels, you still have the money when the music stops.