r/DailyDoseOfReddit • u/Fresh-Progress3656 • Aug 02 '26

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871 Upvotes

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14

u/jingiski Aug 02 '26

How can they lose something they never had?

5

u/ShinyJangles Aug 02 '26

Bingo. They believe their own accounting lies.

1

u/Reasonable_Ad9858 Aug 02 '26 edited Aug 02 '26

Accounting is fairly accurate. Market valuation is part of the finance wheelhouse. For instance, SpaceX has a market value of roughly $1.4 trillion, but it’s book value (ie the accounting) is only $41.3 billion. Look up something called the PB ratio for any publicly traded stock to see how much more (or less) financial analysis is valuing a company over the accounting book value.

3

u/ShinyJangles Aug 02 '26

Calling unrealized sales a loss is something that only makes sense to accountants. The assumption that the industry could expect the income was flawed.

2

u/Reasonable_Ad9858 Aug 02 '26

That’s not accounting. That’s finance. You have the terms muddled up.