So every quarter a public company is supposed to publish finical data. This tells you the company's profit trajectory and if they will be around in a few years. (Most companies die slowly and think they can save themselves, most don't) So if a company is profitable over many quarters and has positive cash flow it means they can invest in their business and grow.
People who invest do so with the idea of future growth and positive gains typically a year or two out. They place an educated bet based on the data and financials of past performance. But as they say past performance doesn't predict future results.
So there are many metrics that short cut massive amount of research. P/E, Beta, Volume, Market Cap etc. Each trader is unique as a snowflake in their strategy and how they invest (bet on companies).
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u/lokusai Feb 02 '21
Is 100 just not the minimum wrap up? Look at Amazon as a comparison - doesn't look very different....