SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : America On-Line: will it survive ...?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: John Koligman who wrote (12741)12/22/1998 2:03:00 PM
From: RocketMan  Read Replies (2) of 13594
 
I was thinking about this same market cap issue the other day. Is there a maximum market cap beyond which no company can grow? Let's take a look at sales as an indication. AOL's sales were roughly 2.5B for the FY ending in June 98. Let's say they double their sales every year for the next five. That would be consistent with industry estimates that the internet is doubling every year, and e-commerce projections that go from 80B to 1.2 trillion in 2002. See for example

sbaserver1.sba.muohio.edu

That would give AOL 80B in sales in 2002. AOL's price/sales is around 20, which if it stayed the same would give it a 1.7 trillion market cap in 2002. Not 3 trillion, but hey, what's a trillion here and there ;-)

Now, do I believe this? No, I can't imagine any company with that kind of market cap. But then, why not? Would it fall because of its own weight, would the feds come in and break it up, would competition bring it down? No matter, by the time any of those things happened, we would all be pretty wealthy.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News