The thing to understand about stock price is that it is based on perception and not necessarily on potential. Ultimately it boils down to whether you think some

The thing to understand about stock price is that it is based on perception and not necessarily on potential. Ultimately it boils down to whether you think someone will be willing to pay a higher price for this at a future point in time more than whether you think the company has potential. Retail investors, and particularly first time investors, in the market have been growing rapidly. These kinds of investors tend to be less careful with where they invest, relying primarily on the media, word of mouth and hype than on fundamentals. With enough people you have a critical mass, creating a chain reaction that's impossible to stop. This is literally free investment for a company. As a serious investor, you would be foolish to ignore this. Even if the company was not positioned to do well earlier, this new found cash flow gives them a huge edge. And thus this creates a sort of a self fulfilling prophecy where more and more people invest, because they believe everyone else is investing, and because everyone else is investing the company will surely become #1 irrespective of where they are today, and inadvertently propelling the company to become #1 in the process.