[slashdev]

Stock market valuations are not about current revenue. That’s just a fundamental disconnect from how the financial markets work.

In theory it’s more about forward profits per share, taking into account growth over many years. And Nvidia is growing faster than any company with that much revenue.

Obviously the future is hard to predict, which leaves a lot of wiggle room.

But I say in theory, because in practice it’s more about global liquidity. It has a lot to do with passive investing being so dominant and money flows.

Money printer goes brrr and stonks go up.

That is not the only thing that matters, but it seems to be the main thing.

If it were really about future profits most of these companies would long since be uninvestable. The valuations are too high to expect a positive ROI.