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> until it doesn't. That's not necessarily the case. Financials are irrelevant for stocks like Tesla, and it can continue to moon indefinitely if the market di
by synaesthesisx 5y ago
> until it doesn't.
That's not necessarily the case. Financials are irrelevant for stocks like Tesla, and it can continue to moon indefinitely if the market dictates it.
- Wowfunhappy 5y agoSo I guess “stocks like Tesla” are really just tulip petals? What are people paying for?
- systemvoltage 5y agoIt's a great question. Future potential, leadership, tech stack, manufacturing capacity, etc. There is a lot of "soft" aspects of running a company and valuation is one of the most difficult/error-prone things to do. Damodaran's Google talk kind of does a good job describing valuation of high-growth companies (it is deceivingly simple): https://www.youtube.com/watch?v=Z5chrxMuBoo https://www.youtube.com/watch?v=Z5chrxMuBoo
- ac29 5y ago> it can continue to moon indefinitely if the market dictates it Not really. The higher the price gets, the more new money it takes to move the price higher. TSLA has done significantly worse than the overall US stock market this year.