• Dim0N@lemmy.world
    link
    fedilink
    arrow-up
    26
    arrow-down
    9
    ·
    1 year ago

    Ah yes, the famous Walmart, having 2 times the profits of Apple but costing 5 times less in stock.

    The picture totally makes sense, no questions asked.

    • Erismi14@midwest.social
      link
      fedilink
      English
      arrow-up
      15
      ·
      1 year ago

      Stock price is not inherently tied to profit. That is why p/e ratio exists. Also different industries can have different p/e ratios. Not even this holds though. Tesla’s p/e is OOM more than Toyota, but Toyota has higher profits and sells more cars.

    • jubilationtcornpone@sh.itjust.works
      link
      fedilink
      English
      arrow-up
      5
      ·
      1 year ago

      The OP data is wrong, which you probably already know. Apple’s net income (AKA Profit) for 2023 was ~$96B while Walmart’s was ~$11B. Walmart is the largest corporation by revenue but retail is a low margin, high overhead business. Their operating costs are much higher than Apple’s.

      Also, as another commenter mentioned, share price is not linked that closely to profitability. There are other factors that influence the share price. Hell, share price isn’t even tied that closely to it’s actual value. See “Book Value” vs. “Market Value”.