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Your criticism is definitely fair, but with retail investors there is a lot more value created by signaling your intent and direction. Pizza Hut would never ev
by soared 6y ago
Your criticism is definitely fair, but with retail investors there is a lot more value created by signaling your intent and direction.
Pizza Hut would never ever consider talking about drone delivery, or real time order tracking. Dominos is embracing those technologies, meaning they’re open and quick to adopt change. That makes the company much more resilient (reduction in risk) and able to capitalize (larger upside). That is value.
It’s comparable to Tesla’s stock price. Yeah the product is good etc, but Elon talks about going to Mars. Part of dominos growth is because they talk about “going to Mars”.
To be clear, there is actual value or potential value in this, it’s not just posturing.
- linuxftw 6y agoNo, it just means their management suffers from an inability to resist buzzwords and dumb ideas.
- petra 6y agoThe value in talking is that it sometimes increases the stock price, and that has material benefits for companies. But besides the rise in stock price - talking has no value, in my opinion.
- dheera 6y agoYup. Retail investors invest in hype, not fundamentals. It may sound like I'm trolling but this is pretty true across the market. If you want high stock prices, manufacture a bunch of hype. If you want to win in the stock market, figure out how to properly model and predict hype.
- wolco2 6y agoThe stock market is a popularity based platform where you try to figure out where the market is heading and go first. Fundamentals are important but they don't themselves drive the market because fundamentals are already known and should be factered in.