3 ms·

The market is "pricing in" this future potential. With Walmart, it's hard to speculate what ground-breaking future potential they might have that isn't already

The market is "pricing in" this future potential. With Walmart, it's hard to speculate what ground-breaking future potential they might have that isn't already known.

riku_iki 2y ago
> The market is "pricing in" this future potential. or short gain opportunity with goal to quite before crash.
gizajob 2y ago
That’s kind of my point in framing the question like that - we know WalMart and how ubiquitous it is (in America) and how it makes money, and it’s “moat” so it’s not a sexy business, but a totally solid one. So is what the market is pricing in really becoming silly now? I think Nvidia has a huge competitive advantage but I also think it could be undone within 3 years or so given how much money is now at stake. The other side of that is that I wouldn’t want to try and build a better WalMart inside three years. My ultimate worry is that Nvidia is becoming so overcooked now that it could pull the whole of the Nasdaq down when it blows, and that won’t be good for any of us.
- alberth 2y ago
  > My ultimate worry is that Nvidia ... could pull the whole of the Nasdaq down when it blows It's already happened the other way. 50% of all S&P 500 growth comes from just 5-companies (Nvidia). Or said differently, 495-companies can only match what just 5-companies contributed (which Nvidia is 1 of those 5). https://finance.yahoo.com/news/meet-5-stocks-contributed-almost-100500978.html https://finance.yahoo.com/news/meet-5-stocks-contributed-alm...
  - abduhl 2y ago
    This is not news. Market gains generally have always been dragged along by a small percentage of companies: Focusing on aggregate shareholder outcomes, we find that the top-performing 2.4% of firms account for all of the $US 75.7 trillion in net global stock market wealth creation from 1990 to December 2020. Outside the US, 1.41% of firms account for the $US 30.7 trillion in net wealth creation. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3710251 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3710251
deleted 2y ago
[deleted]

The market is "pricing in" this future potential. With Walmart, it's hard to speculate what ground-breaking future potential they might have that isn't already known.

riku_iki 2y ago

> The market is "pricing in" this future potential. or short gain opportunity with goal to quite before crash.

gizajob 2y ago

That’s kind of my point in framing the question like that - we know WalMart and how ubiquitous it is (in America) and how it makes money, and it’s “moat” so it’s not a sexy business, but a totally solid one. So is what the market is pricing in really becoming silly now? I think Nvidia has a huge competitive advantage but I also think it could be undone within 3 years or so given how much money is now at stake. The other side of that is that I wouldn’t want to try and build a better WalMart inside three years. My ultimate worry is that Nvidia is becoming so overcooked now that it could pull the whole of the Nasdaq down when it blows, and that won’t be good for any of us.

alberth 2y ago
> My ultimate worry is that Nvidia ... could pull the whole of the Nasdaq down when it blows It's already happened the other way. 50% of all S&P 500 growth comes from just 5-companies (Nvidia). Or said differently, 495-companies can only match what just 5-companies contributed (which Nvidia is 1 of those 5). https://finance.yahoo.com/news/meet-5-stocks-contributed-almost-100500978.html https://finance.yahoo.com/news/meet-5-stocks-contributed-alm...
- abduhl 2y ago
  This is not news. Market gains generally have always been dragged along by a small percentage of companies: Focusing on aggregate shareholder outcomes, we find that the top-performing 2.4% of firms account for all of the $US 75.7 trillion in net global stock market wealth creation from 1990 to December 2020. Outside the US, 1.41% of firms account for the $US 30.7 trillion in net wealth creation. https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3710251 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3710251

deleted 2y ago

[deleted]