Google Slaughters Indonesia in 2013
Google will be one of the largest companies inside the entire world. In fact, This particular will be so large a company which you can’t actually compare its value to any individual Indonesian company – rather you have to compare This particular to the entire value of Indonesia’s stock market, or what will be better known as the market cap.
When I first did the calculations back in 2006, Google was valued at US$130 billion as well as also worth more than all the Indonesian companies put together (just US$80 billion).
To me This particular didn’t make much sense. How could one single company, operating almost exclusively inside the virtual world, be worth more than all the Indonesian cement producers, mining, property as well as also retail firms, banks, agribusiness firms as well as also telecom companies etc. combined?
Surely Indonesia as a growing emerging economy would likely catch up? as well as also This particular did.
2013: Not a not bad year for Indonesian stocks
In 2011, Indonesia’s stock market was valued at 1.87 times Google. as well as also in 2012, Indonesia was still valued at 1.69 times Google. although in 2013, things reversed as Google’s valuation soared as well as also the value of Indonesian companies slumped as the Rupiah nosedived. In fact, Google’s share cost surged 53.91 percent in 2013, translating into total market capitalization of US$374.68 billion (up via US$232 billion at the end of 2012).
In contrast, Indonesian share prices sank as investors lost confidence as well as also pulled their money out of the country. To make matters worse for foreign investors, they also had to shoulder massive forex losses as the beleaguered Rupiah lost 20% of its value.
As a result, by the end of 2013, Indonesia was worth just US$347 billion or 0.93 times Google’s valuation. Of course, the data may just be a blip as well as also Indonesia should perform much better in 2014. After all, what could possibly go wrong?
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Google Slaughters Indonesia in 2013
Google Slaughters Indonesia in 2013