Evaluations vs share price

If you cut a cake into 4 pieces and take 1 slice you have 25% of the cake.

If you cut it into 100 pieces and take 25 slices you still have 25% of the cake.

There are pros and cons for having a higher and lower share price but the price on each stock isn’t indicative of the health of a company (broadly)

Take Amazon and Microsoft

Amazon are valued at 1.68tr with a share price of $3316

Microsoft are valued at 2.25tr with a share price of $299.09

There are just more shares in Microsoft than have been created in Amazon.

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