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by nsgoetz
3123 days ago
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> Are they buying an option on the right to receive dividends at some indeterminate point in the distant future? > Do they think they'll receive a fraction of the enterprise value when Google gets bought by a bigger company? > Will Google get sold off piece by piece and they'll get a pro-rata share of the liquidation proceeds? Yes, but also a bet on other people's demand for those things - its asset backed. Since they all are based on USD I think they're a little safer bet than a cat fad. |
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Exactly.
> its asset backed
Not really. Google's assets minus its liabilities are $139 billion. The value of its stock is $724 billion.
So 81% of the company's value isn't "backed" by anything -- not the company's assets, not the promise to pay dividends in the future, nothing.