Hi, this is Wayne again with a topic “Valve Prints Money”.
Hey Dale and bread. What would your reaction be if Apple spent, five percent of its cash stockpile to buy valve, announced built-in rosetta-like emulation for Steam games on Mac and announced an apple eye deck our disbelief, because I actually think that valve is probably worth a lot more than five percent Of Apple’s cash reserves see that’s the thing valve is a private company. We have no idea, except that we know that valve is a literal money. Printing machine, oh yeah, oh yeah valve, is okay.
What is what is Apple’s cash reserves right now hold on one? Second, Apple cash Reserve: don’t forget that valve takes 30 percent of sales. Oh, we know yeah, we know Apple’s cash in hand was 62.48 billion dollars. Did you just suggest that valve could be purchased for around 750 million dollars? Yeah, you better. You better add an order of magnitude or two valve is we have no idea, that’s the thing, but on top of valve making copious copious amounts of money, their future outlook is outstanding. If I had an opportunity to invest in valve, I would like all conflicts of interest aside.
This is not investment advice, blah blah, I’m not a financial advisor, Etc. But if I had the opportunity I would freaking go for it. They have shown time and time again that their moats are un impassable epic games couldn’t do it. Microsoft can’t even put a dent in in valves near monopolistic position in PC, PC game sales, and now that valve is building their own Hardware platform around it.
Holy um yeah people are saying valve is estimated at 8 billion, but based on what there’s no way, we don’t know there’s no way, I guarantee you. If they went open suddenly their valuation would be way higher than that. There’S there’s like there’s.
Actually, no one and valuation is not as simple as money in Money out that, but that’s the other thing as far as I can tell they’re overhead compared to a company like apple, is nothing minuscule, nothing yeah like how many people work there. Is it like? A few hundred people – I don’t think we even know I found an estimate. I don’t think we do know.
I found an estimation website um that that thinks, there’s valve believes only 10 000 people around the world are capable of working for the company. I don’t know what the hell that means um. I found an estimation site. That said, they think it’s 350, but I don’t think that’s based on anything. I found another one that claims 1100. I mean you might.
This is like celebrity net worth articles. Yes, we might as well just play darts again and just throw darts at a thing and with numbers on it we might as well make that our estimate. We don’t we don’t know unless we work there and even people who work there. I don’t even know if they would know because they obviously do some remote work, given that Gabe Newell like lives in New Zealand now or whatever so uh. There can’t be more than three people at valve because they can’t count higher than that. No, no! No! That’S not right because they can’t count higher than that. We don’t know how many people work at valve and neither do they and yeah that wouldn’t account for any of the contractors that might work with valve on projects yeah um. No, I nobody knows I don’t. I don’t think anyone’s buying valve anytime anytime soon I mean look at the valuation of a company like epic who can’t even figure out how to compete with valve like what’s what’s epic games worth yeah, they make other stuff, though uh sure yeah they’ve got the engine Business, but if valve felt like having an engine business, I’m sure they could bother with it at some point they sort of do right valve. Can’T you use barely, who uses source uh Titanfall 2 was in Source, okay, so one game from like eight years ago.
I don’t look into this gold Source even out yet Half-Life Alex was gold Source. Epic games is valued at 32 billion. I guarantee you, I give you my personal Linus Tech tips guarantee that valve is worth more than epic games by at least some multiplication Factor. So, okay, so Apex Legends isn’t Source um. But it’s really not a good argument, because there’s there’s very few other games, it’s like Titanfall and Apex and then valve games. It’S not very many hiking.
There are other ones, but no it’s not right. Any High kids in float plane chat, says valve mostly just wants source for themselves. The documentation is allegedly horrendous. Yeah that doesn’t surprise me just valve doing valve things you work on whatever you want. No one ever wants to work on documentation, that’s how it goes. Jamon 1916 says valve was valued at 7.7 billion in May 2022, based on Bloomberg calculations. But let me tell you a thing I actually I don’t remember if it was Bloomberg or someone else, maybe it was like Forbes or something these like reputable sounding Publications uh. I remember seeing a like a YouTuber uh net worth ranking thing or YouTuber earnings, ranking thing that I was going through and I was like.
I know some of these people. This is very wrong. Not even close, you have absolutely no idea what you’re talking about, and so I reached out.
I dm’d the author of the article. I like hey as someone who you know knows a thing or two about this industry. I would be curious to understand your methodology for calculating these.
They just straight up, didn’t reply to me, of course, not because they don’t have a satisfactory reply. I threw a dart at a wall yeah pretty much so that’s 7.7 billion and they might as well have actually pulled it out of the thing that they used to this. To light up like it’s, no forget it, um pretzel, parkour and floor plan shot.
I couldn’t agree more, they say, let’s put this talk to rest of alvisworth at least two dollars, yeah yeah. That and I mean here’s, here’s another thing guys something is worth whatever someone will pay, so we can argue all day about what it’s worth. People are going to pay big money for valve stock if it went winner according to the last known purchase price, for it is worth 44 billion dollars.
That’S a clever way of wording that, but that’s the thing right. So people can talk all day about what their sealed Super. Mario Bros, you know, is worth or whatever right, but it is only worth whatever the next person will pay for it. We can infer based on previous sales, but we actually don’t know the worth of anything until somebody actually Forks over money for it.
So we could make educated guesses if we had access to their financials or whatever else. But even then we wouldn’t know because, like I said, I think, valve’s Outlook is extremely positive. I think they’re nowhere near done growing. I don’t think gaming is anywhere near done growing.
I don’t think look at the okay capability or potential for broadening their business is anywhere near done growing and if you were like a Disney style, Corp yeah, imagine the money, printing machine or releasing Half-Life 3 would be. Oh yeah yep, like the the potential Outlet, The Cinematic Universe, uh yeah Team Fortress, the movie yeah Team Fortress. I go to that, but I would too it’d be awesome. Yeah it’d be like Barbie movie, but Team Fortress.
I I used to watch like yeah. I don’t know I mean portal. Has portal, has so much potential another portal game, another any game they’ve made, except for artifact any IP they own? Basically, if you were to take, if you were to, if you were to take like uh, oh man, just valve doesn’t even participate in like the mobile, like whale whale harpooning space like if you were to take valve IPS, do they it’s not mobile, but I’d say, Like CS, go boxes and sure, but it’s a completely different market, so you’re right, you could yeah, you could get more from going from mobile for sure I I’m just I’m just saying, because I knew people you’re right.
Why not both but – and I agree, but some people are gon na be like so I was just making sure if they did some some mobile like uh. You know what’s that with tiny, if they did like a Tiny Tower, but you build an aperture. You know test facility and they it included all the typical.
You know valve trimmings. People play the crap out of that yeah. That’S absolutely that sounds sick. I would play that right. Yeah people would spend copious amounts of money on it. Oh yeah so yeah so that that 12 billion, whatever it was, is just wrong.
I guarantee it it’s completely if valve was, if valve was valuated at 12 billion. I I just invest everything. I have immediately yeah again not advice, blah blah, but like holy crap, because you know that’s hockey, sticking the second people realize how incredibly undervalued it is. .