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If meta is going to imminently collapse as the author believes, they should put their money where their mouth is: show your short position! Theres this segment

If meta is going to imminently collapse as the author believes, they should put their money where their mouth is: show your short position! Theres this segment of, lets say highly online people, that think meta is about to die. But whatsapp, facebook and instagram are very heavily used by normal people.

tempodox 3y ago
Yes, and they are lifestyle apps and thus generational. Kids won't be caught dead in the place where their parents hang out.
- throwitaway222 3y ago
  Those kids don't have money yet. Parents do, advertising goes to where the aging people are.
- Cthulhu_ 3y ago
  Their kids might though, places like roller skating rinks and arcades seem to have a bit of a resurgence lately.
pharmakom 3y ago
How can you prove they don’t privately have a long position?
badcppdev 3y ago
I've just reread the article and I'm having trouble finding anything saying that, "Meta is going to imminently collapse". Can you clarify please?
kmeisthax 3y ago
>show your short position! I've heard this before from crypto boosters. Shorting doesn't work that way: you cannot hold a short forever just because you think something is a scam. In order to short anything, you need to borrow it first, and that comes with recurring fees. The profit margins on most short plays are thin enough that holding a short for longer than a week or two would eat up fees. So just because you know something is a scam or about to collapse is useless for profitably shorting it - you also need to know when exactly that bubble is going to burst or you will lose lots of money. Meanwhile, the market is full of people high on hype, loading up on the stock, and frustrating any attempt at a profitable short. Even when a short play is perfectly warranted (e.g. GameStop late 2020), people might barrel into the stock you're shorting just to fuck you. It's not enough for there to be bad news about a stock, it has to be salient to the investor class to get them to sell. So no, shorting is not a way to "put your money where your mouth is".
- terminous 3y ago
  Right, the classic phrase is "markets can stay irrational longer than you can stay solvent"

tempodox 3y ago

Yes, and they are lifestyle apps and thus generational. Kids won't be caught dead in the place where their parents hang out.

throwitaway222 3y ago
Those kids don't have money yet. Parents do, advertising goes to where the aging people are.
Cthulhu_ 3y ago
Their kids might though, places like roller skating rinks and arcades seem to have a bit of a resurgence lately.

pharmakom 3y ago

How can you prove they don’t privately have a long position?

badcppdev 3y ago

I've just reread the article and I'm having trouble finding anything saying that, "Meta is going to imminently collapse". Can you clarify please?

kmeisthax 3y ago

>show your short position! I've heard this before from crypto boosters. Shorting doesn't work that way: you cannot hold a short forever just because you think something is a scam. In order to short anything, you need to borrow it first, and that comes with recurring fees. The profit margins on most short plays are thin enough that holding a short for longer than a week or two would eat up fees. So just because you know something is a scam or about to collapse is useless for profitably shorting it - you also need to know when exactly that bubble is going to burst or you will lose lots of money. Meanwhile, the market is full of people high on hype, loading up on the stock, and frustrating any attempt at a profitable short. Even when a short play is perfectly warranted (e.g. GameStop late 2020), people might barrel into the stock you're shorting just to fuck you. It's not enough for there to be bad news about a stock, it has to be salient to the investor class to get them to sell. So no, shorting is not a way to "put your money where your mouth is".

terminous 3y ago
Right, the classic phrase is "markets can stay irrational longer than you can stay solvent"