4 ms·
Softbank is currently making up the valuation, and by doing so, setting the value for their existing holdings. Take those valuations with a large grain of salt,
by ericd 7y ago
Softbank is currently making up the valuation, and by doing so, setting the value for their existing holdings. Take those valuations with a large grain of salt, it's not like a publicly traded security where you can be reasonably sure of getting around that market value if you decided to sell right now.
- kolbe 7y agoI suggest you look into the history of companies like TLRY and the current state of BYND.
- ericd 7y agoCan you summarize what you’re trying to point out with those two? Is it just that the market is bubbly and willing to support insane valuations?
- kolbe 7y agoBeyond Meat recently was trading in the open market at $230. They decided they wanted to sell 4% of the company in a secondary offering, and they were only able to get $160/share. Tilray had similar problems trying to monetize their high valuation. The point is that bubbly tech prices in public markets are no less fragile than bubbly ones in private markets.
- ericd 7y agoAh great example, thanks for summarizing. I haven't been following BYND. 4% is a pretty small percentage compared to the amount of float (~91% right now). I wonder if the price would have moved that much if that many shares had been sold unofficially. But yeah, if you sell integer percentages of a company in a short timeframe, you're right that you can't expect to get the current market price. I'm surprised that it moved it so much in this case, though.