Market capitalization of a public company is not the only way to measure influence in a market, or even current revenue (Instagram comes to mind). But such comparisons sometimes are instructive when trying to understand where a market could be headed.
As a means to illustrate what Amazon has done to the retail market, consider that Amazon, generally considered the world’s largest e-commerce company, has a market cap of $100 billion.
That is more than the market cap of Macy’s, J. C. Penny, Nordstrom, Gap, Abercrombie & Fitch, Costco, Dillard’s, Barnes & Noble and Sears, altogether.
Amazon's market capitalization does tell you how dominant it is in the online e-commerce business, though.
Tuesday, June 12, 2012
Market Capitalization Isn't Everything, But Neither is it Meaningless
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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