Market cap is not a measure of past profits. | Hacker News

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		brookst on Jan 23, 2023 \| parent \| context \| favorite \| on: OpenAI and Microsoft extend partnership Market cap is not a measure of past profits.

RegW on Jan 23, 2023 [–]

or future?

brookst on Jan 24, 2023 | [–]

Well, it’s a consensus estimate of NPV of future profits. People can be wrong, and often are, but that’s what stock prices bet on.

But OpenAI could hit the profit cap without having a particularly high market cap.

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