It's like if the odds of a horse to win are 1:10 but you're betting 100:1. It's irrational and has no basis when compared to other similar companies. They're n

It's like if the odds of a horse to win are 1:10 but you're betting 100:1. It's irrational and has no basis when compared to other similar companies. They're not betting that the "company will do great in the future" - that's not really how this works - they're betting number go up. There's a lot of ways for number to go up, some to do with the underlying business, and some to do with short-term price action gambling. The difference is the former is sustainable over time - positive sum even - the latter is not, and the market will usually drain the latter out.