Nvidia’s run has been so remarkable that the market now believes the company is worth more than $100 million per employee....

"…For Nvidia, after this latest run-up took it north of the $3T milestone, the company is being valued at more than $100M for each of its 29,600 employees (per its filing that counted up to the end of Jan 2024).

That’s more than 5x any of its big tech peers, and hundreds of times higher than more labor-intensive companies like Walmart and Amazon. It is worth noting that Nvidia has very likely done some hiring since the end of January — I think the company might be in growth mode — but even if the HR department has been working non-stop, Nvidia will still be a major outlier on this simple measure.

We are running out of ways to describe Nvidia’s recent run… but a nine-figure valuation per employee is a new one."

  • coffeetest@beehaw.org
    0·
    26 days ago

    The great thing about the stock market compared to other investments like crypto is that stocks are based on the inherent value of the business they represent. Stocks are based on financial fundamentals. You can believe in those investments because they are based on something real and not simply rampant speculation. For example.

    Tesla. Worth more than most of the rest of the car market combined because… reasons?

    Paypal. Lost 80% of its value starting in July 2021 over a year and never recovered because of terrible problems? Huge losses? Nope, because it “only” grew at 8-9%.

    2008 US housing rated as “AAA” investment i.e. “good as cash” based on actual trash.

      • Chadus_Maximus@lemm.ee
        0·
        26 days ago

        I mean… It would be true if there were no derivatives. When you start betting money on whether the line goes up or down, the stock price cases being reflective of the stock’s value.