E.g., Google lost $100b after its AI made a factual error in a demo.
Or when Musk lost $200b.
What happens with that loss? Do they need to do layoffs specifically because of that? Close massive projects? How can a company continue to even exist after that kind of financial loss?
Thanks!
In: 5
Eli5 answer. It doesn’t lose money it loses value. Your new PS5 is worth 500 today because if you try to sell it some will probably pay that much. But if you smash it to bits with a hammer you won’t be able to find someone willing to pay that much anymore. It’s value has gone down. No money actually went anywhere.
They don’t lose money. They lose value. The stock price simply goes down meaning the company value does. Cash and financials are not affected in the short term
Eli5 answer. It doesn’t lose money it loses value. Your new PS5 is worth 500 today because if you try to sell it some will probably pay that much. But if you smash it to bits with a hammer you won’t be able to find someone willing to pay that much anymore. It’s value has gone down. No money actually went anywhere.
They don’t lose money. They lose value. The stock price simply goes down meaning the company value does. Cash and financials are not affected in the short term
They just calculate the drop in share price vs the issued shares, and then total that up I think.
It’s not like Google the company itself had 100b in cash simply vanish.
They just calculate the drop in share price vs the issued shares, and then total that up I think.
It’s not like Google the company itself had 100b in cash simply vanish.
>Google lost $100b after its AI made a factual error in a demo.
Google didn’t loose a penny. They still had the same number of dollers in the bank the next day.
Google didn’t lose a single cent, google shareholders did. Market cap is the price of all its stocks at current price, it’s the theoretical value of a company and it goes up and down however the hypetrain dictates.
>Google lost $100b after its AI made a factual error in a demo.
Google didn’t loose a penny. They still had the same number of dollers in the bank the next day.
Google didn’t lose a single cent, google shareholders did. Market cap is the price of all its stocks at current price, it’s the theoretical value of a company and it goes up and down however the hypetrain dictates.
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