Company’s market cap is back up to October levels.
Just as I don’t understand why the DOW has been hitting all time records lately, I also don’t understand this: Verisign is apparently worth the same with or without seven-percent-a-year price hikes on .com.
When Verisign dropped the bomb on October 25 that the Department of Commerce was reviewing its ability to automatically increase prices, the company had a marketcap of about $7 billion.
Verisign signed a contract renewal without the hikes.
Now, six months later, Verisign’s market cap is back up to $7 billion.
Verisign is a stable, cash printing machine. Yet you’d think shaving off hundreds of millions of dollars a year in pure profit would result in a lower valuation.