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Joined 1 year ago
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Cake day: August 4th, 2023

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  • But the company doesn’t have the money. Stock value means investor valuation, not company funds.

    Once a company goes public for the very first time, it’s getting money into its account, but from then on forward, that’s just investors speculating and hoping on a nice return when they sell again.

    Of course there should be some correlation between the company’s profitability and the stock price, so ideally they do have quite some money, but in an investment craze like this, the correlation is far from 1:1. So whether they can still afford to build the data centers remains to be seen.