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How come their stock isn’t way down? I’d expect a 50% drop.
by mrfusion 5y ago
How come their stock isn’t way down? I’d expect a 50% drop.
- clydethefrog 5y agoAt the latest shareholders meeting around 30 % was in favour for a shift to more sustainable business.
- akvadrako 5y agoMaybe people don't expect the ruling to stand. Shell is 11% of the AEX stock index. If they were forced to halve their operations just because of a change in the courts interpretation it would create a significant lack of confidence in the business legal environment. The Dutch government is more business friendly than that.
- dredmorbius 5y agoMarkets price in risk. The market may have priced in the outcome, such that it was already accounted for. The market may be pricing in appeals or counteractions which would mitigate the outcome. Mind that much of "the market does" strongly resembles Just So Stories.
- ClumsyPilot 5y agoAlternatively we are in a massive carbon bubble, because valuation of these companies is based on their reserves, by the time we'll get to the last drops of oil they'll have to deal with famine and roving tribes of technobarbarians. Thats not a risk, it's a certainty. When this buble pops it will make 2008 look like a frat party. https://www.cbd.int/financial/doc/carbon-bubble.pdf https://www.cbd.int/financial/doc/carbon-bubble.pdf