Tesla’s market capitalization in January 2020 made it more valuable than both GM and Ford combined, but Tesla only produces and sells a fraction of the cars. This is just one example of investors being willing to pay handsomely for expected future growth. Companies like Tesla, Netflix, and Netscape can teach a lot about stock valuation.
Subscribe:
TD Ameritrade is where smart investors get smarter. We post educational videos that bring investing and finance topics back down to earth weekly. Have a question or topic suggestion? Let us know.
Connect with TD Ameritrade:
Facebook:
Twitter:
Open an account with TD Ameritrade:
source
