The World’s Largest Tech Companies Embracing Blockchain Face A Valuation Reckoning

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The World’s Largest Tech Companies Embracing Blockchain Face A Valuation Reckoning Global2000

, #4 on the list) meanwhile has had a love-hate relationship with cryptocurrencies but followed the pragmatic approach to develop blockchain projects such as ethereum-based Quorum and blockchain subsidiary, Onyx. But a growing number of banks of all sizes - 35 shown in a recent Wall Street Journal

- adopted in 2021 and 2022 the ability to offer bitcoin investing to clients through the services of technology firms like NYDIG and Paxos.Time For A Reset? Investors forgive tech firms’ lack of profitability for lengthy periods, but a profitability-based valuation may boomerang and cause bull-cycle darlings at greater risk than firms with strong profitability. An important secondary reason for tech stock excessive appreciation may be related to how passive investing follows rigid allocation rules that could give tech stocks a higher share than they deserve from a profitability perspective.

What about banks’ blues? Is this a buying opportunity? It’s undeniable that bank balance sheets will take a hit as nonperforming loans grow from 1.6% in 2020 - they reached 7.5% in 2010 following the financial crisis. But it is also true that much of bank balance sheets are cleaner. Today there are only vestiges of Wall Street toxicity due to much stricter regulations on things like risk-based capitalization requirements.

 

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The World’s Largest Tech Companies Embracing Blockchain Face A Valuation ReckoningA review of Forbes 20th rendition of the Global 2000 list, made up of large public companies with a combined market capitalization of $76.7 trillion and combined profit of $5 trillion, showed signs that large tech firms on the list that adopted blockchain technology could be facing a profitabilit...
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