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The problem is tech companies aren't immutable to the laws of finance and human folly. Not every EV truck startup is going to become the next Tesla... yet peopl
by n_io 6y ago
The problem is tech companies aren't immutable to the laws of finance and human folly. Not every EV truck startup is going to become the next Tesla... yet people behave as though this is the case.
- tonyedgecombe 6y agoI'm not sure Tesla is going to become the next Tesla.
- grey-area 6y agoTesla itself is priced just now as if it is the next tesla.
- girvo 6y agoLooking at you, Nikola
- skohan 6y agoTo me those are the real signs of a bubble: NKLA's share price continuing to grow with a total lack of evidence the company is anything besides a complete fraud, or also ZOOM's share price spiking because people confused it with ZM (the actual ticker symbol for the video communication company). If those aren't signs of a deeply irrational market, I don't know what are.
- WrtCdEvrydy 6y agoA lot of it will be FOMO. Noone wants to miss out on the next Amazon because people are greedy.
- DataWorker 6y agoNo mention of peloton? The big problem is the umbrella of “tech stocks” includes an increasingly diverse set of companies that have little in common. FANGs are an example. Movies, advertising, consumer electronics, online retail, but we talk of “tech” stocks being too high or low as a group. Microsoft is not peloton. Amazon is not zoom.
- skohan 6y agoI think peleton is in a different class because at least they have a real product which people like to use, and good brand perception overall, but the valuation is also probably out of control.