#market-valuation

#market-valuation

The market dropped almost 20% in April. It is now 34% above its 52-week high. There is no single reason to think it will stop rising, except that it is already rising. The market is expensive, based on S&P ratio yardsticks. However, strong earnings, particularly in the big tech sector, can offset this. Big tech rules the market value. Big tech earnings were super.

"Frankly, it is difficult to project the true potential of this new entity, but we know it is big." This reflects the widespread confusion surrounding the AOL Time Warner merger.

Black Rock Coffee Bar has confidentially filed for an initial public offering in New York, targeting a valuation exceeding $1 billion. This will mark the first IPO from a U.S. coffee company since 2022.

OpenAI is the world's third-most-valuable private company, valued at $300 billion in its latest fundraise in March 2025, with risks to its business model broadening.

The tech arms race might polish earnings calls but risks creating a sentiment gap, as AI cannot replace the critical element of credibility in leadership.

Chime Financial, anticipated to debut on Nasdaq, reflects shifts in investor sentiment, with its current valuation at $11.6 billion being significantly lower than its 2021 peak.

The actual market value of water companies appears to be substantially lower, as demonstrated by KKR's $4 billion equity offer for Thames Water.

AI's potential to revolutionize businesses is overshadowed by current revenue models heavily reliant on advertising, leading to undervalued stock prices for companies like Meta and Alphabet.

Nintendo's recent surge in market value, exceeding $100 billion, is largely attributed to the anticipated release of Switch 2 and Mario Kart World, enhancing its market capitalization.