Sunday, December 15, 2013

Market Cap Reveals Size of a Co; Share Price alone is Incomplete

Apple (AAPL) $500 billion market cap at $555.00/share
Amazon (AMZN) $176 billion market cap at $385.00/share
Baidu.com (BIDU) $60 billion market cap at $172.00/share
Exxon Mobil (XOM) $433 billion market cap at $99.00/share
Facebook (FB) $130 billion market cap at $53.00/share
Google (GOOG) $354 billion market cap at $1,060.00/share
LinkedIn (LNKD) $27 billion market cap at $229.00/share
Netflix (NFLX) $22 billion market cap at $375.00/share
Priceline.com (PCLN) $60 billion market cap at $1,170.00/share
Twitter (TWTR) $38 billion market cap at $70.00/share
Yahoo! (YHOO) $41 billion market cap at $41.00/share

Market capitalization is calculated by multiplying a co’s total shares outstanding X stock price. Stock price alone does not give us any insight to the size of a co unless we know and factor the total # of shares outstanding. 


LNKD at $229.00/share is not worth more than FB at $53.00/share on a market cap basis since FB has a whopping 2.45 billion shares outstanding vs LNKD's 119 million sharesOnly after we factor in shares outstanding can we begin to grasp the true size of a specific co/stock.  


Current market cap classifications:

Mega Cap - market cap of $200 billion and above.
Big Cap - $10 billion - $199.99 billion.  
Mid Cap - $2 billion - $9.99 billion. 
Small Cap - $300 million to $1.99 billion. 
Micro Cap - $50 million to $299.99 million. 
Nano Cap - Under $50 million. 


LNKD and FB are both Big caps but the difference in size, $27 billion vs $130 billion, is hugeAAPL, XOMand GOOG sport Mega caps while AMZN needs to climb $53.00/share to $438.00 in order to graduate from Big to Mega cap. AMZN has 458 million shares outstanding.


Thank you for Reading and Educating

POTC-
http://psychologyofthecall.blogspot.com


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