1118
One year after being bought for $44 billion, X is worth $19 billion
(arstechnica.com)
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 31 Oct 2023
1118 points (100.0% liked)
Technology
59475 readers
2616 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
I'd guess that $19 billion is the value where if someone bought it and did their best to undo everything and get it back on track, that's how much it would be worth.
The problem with measuring value is you have to quantify what that $19 billion actually is. Like you could say it's the share price times the number of shares, except now twitter is privately owned we don't have a market share price anymore.
Theoretically what someone would pay for it. The buyer always has plans to make it better.
Or the textbook definition, the present value of the sum of all future profits.
That's an interesting claim to make, especially on this post ๐
Indeed very interesting. It is a fundamental principle of finance: Investors seek to maximize utility, but this is under the axiom of complete rationality. And even if that condition is met (which I doubt), the utility function of money is not concave at all levels, for example leftmost of the graph, before the price of food. I think that after some point, utility becomes flat and Musk is way beyond that point. Additionally he seems to be a risk loving investor, not a risk averse.
it's x's own current valuation, to calculate stock options to give to employees