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That expectation is not based in any reality, not by anyone working at Tesla, and not by anyone with any sort of realistic view of what the company will do in t
by tinco 5y ago
That expectation is not based in any reality, not by anyone working at Tesla, and not by anyone with any sort of realistic view of what the company will do in the future. The value of the stock simply does not have any relation to the company itself. It's easy to verify this by asking anyone holding TSLA what amount of profit Tesla will make at the point that its current valuation is justified. It doesn't even really matter how far in the future that point is, it would for an investor basing their investments on fundamentals, but that's not what's going on.
As soon as you dive into the numbers, their answer will stop even mentioning the company Tesla, it will be about the American economy or the global economy in general.
I agree the short squeeze held value, it was great, but its value hasn't fallen yet, it's still over ten times its fundamental value, if such a thing even exists. If GME's new plans succeed, and it does exceptionally well and it really becomes a big player in the online games industry, maybe its stock would be worth $40 or even $80. If it doesn't, then all this capital is wasted and the stock is probably worth under $4. With those two very extreme scenarios and their appropriate valuations, what is its stock doing sitting at $150?
The answer is simple, just find a social gathering of GME investors, like r/superstonk, and read what they're saying about the stock. They're calling the squeeze to 450 a "baby squeeze", and that the big one is still coming. Even though as far as I know the squeeze to 450 was the largest squeeze in the history of the stock market.
I'm not saying these stocks are overvalued by the way. If you've got a firm grasp on the dynamics of those stocks, it might make sense to buy/hold at these prices. Just like it made sense to hold Dogecoin to that Goldman Sachs guy. Just don't pretend it's different somehow.