According to Biji.com, Coinpaper reports that changes in market capitalization often outpace actual changes in a company’s business. Although a company’s revenue, assets, and operations may remain almost unchanged, its market value can still lose tens of billions or even hundreds of billions of dollars. Market capitalization is calculated by multiplying the share price by the number of shares outstanding, and since stock prices can change every second, market capitalization can fluctuate dramatically. Take Nike as an example: its market capitalization fell from about $264 billion at the end of 2021 to about $57 billion in September 2026, a decline of more than $200 billion, while its annual revenue remained at about $46.4 billion, nearly flat. The market’s repricing of Nike was far more aggressive than the actual contraction of its business. Market capitalization is the price investors are willing to pay for a company’s stock, reflecting expectations about the future rather than just current sales.