Eli5: How can large companies be worth (valued at) so much when they do not make any net profit?
In: 7
* Lots of people will tell you it’s because there is the potential for profit (and thus dividend payments) in the future.
* But the real truth is because lots of investors know they can convince other people to buy their stock at a higher price.
* And the best way to get people to do that is to play along with the idea that companies that do *this* or *that* are very valuable and we should all buy stock in them.
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