> this is bonkers > Gamestop's stock Any stock is priced on multiple factors, one of which is the fundamentals, or the real value of assets and the company's

> this is bonkers > Gamestop's stock Any stock is priced on multiple factors, one of which is the fundamentals, or the real value of assets and the company's ability to generate revenue. Another factor includes sentiment or guesses about the company's ability to accumulate assets and continue to generate revenue. And the third would be the general state of the investment market, and how equities are valued against other asset classes. So sure, sentiment can absolutely be bonkers in relation to fundamentals, which is what the parent comment is saying. Company strategy and achievement are very much relevant to assessing the fundamentals, and attempting to identify the underlying value of a stock, while seeing past the bonkers, irrational valuations. While it's only "in theory", over a longer timeline, in general, any individual stock will "revert to the mean", that is to say, end up closer to the fundamentals, rather than remain bonkers indefinitely. Of course you don't have to invest merely on fundamentals. You can use bonkers speculative valuations to your advantage. But to do so, you kind of have to evaluate all the components of an individual stock's pricing.