China Mobile (CHL) isn't just about mobile telephony
We're again living in a very weird market. A market where tiny businesses with little profits but strong growth can gather gigantic valuations, whereas gigantic businesses with strong profits but little growth gather minuscule valuation multiples.
Nowhere is this more evident than when we compare the valuations of today's market darlings, the cloud businesses, with today's market outcasts, the mobile telephony companies. Even more extreme is when we compare U.S. tech companies within the U.S. cloud sector with foreign mobile telephony companies.
For instance, take China Mobile.