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by raphaelj 2655 days ago
Market values profit, not produced value (i.e. revenue).
1 comments

That's not true - see Amazon. Public markets value and price future potential profit.
Essentially it's true, the market values each companies stream of future earnings out to infinity, discounted back for time to present day value.

The market just has a big dissonance in how it estimates and discounts those future earnings. Amazon is seen as a future huge profit maker, while Apple is viewed as perpetually at risk of a large scale decline in it's recent profitability.