Market cap is just a representation of what the market thinks a company is worth as applied to a relatively small fraction of the stock.
Compare to a casino: people think that the ball will land on black and are willing to put their money down based on that. That doesn't mean they are right. In this case there is much more of a casino mentality at work that determines Ubers stockprice than that the underlying fundamentals are solid and sound enough to compute a price that is reasonable.
Compare to a casino: people think that the ball will land on black and are willing to put their money down based on that. That doesn't mean they are right. In this case there is much more of a casino mentality at work that determines Ubers stockprice than that the underlying fundamentals are solid and sound enough to compute a price that is reasonable.
In that sense you can't lump everything on the stockmarket on one pile. 37signals had a funny bit about marketcap: https://signalvnoise.com/posts/1941-press-release-37signals-...