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Most stock prices are pure imagination. TLSA rise is no different. I still remember a few years ago when GameStop stocks were nosediving just because some Wall

by znpy 2y ago

Most stock prices are pure imagination. TLSA rise is no different. I still remember a few years ago when GameStop stocks were nosediving just because some WallStreet bro had decided to bet against it. It was all fine until some unheard guy from reddit looked at the actual numbers from the company and noticed the company was doing overall okay, decided to bet against the wallstreet bro, and many more non-wallstreet investors decided to follow suit. And the rest, as they say, is history. So yeah, TSLA stock price is fake, but that's not news. Most stock prices are. Heck, company can even legally inflate the stock price. It's not much time ago that Google did a huge stock buy back to artificially increase the stock price.

TheAlchemist 2y ago
That's a very biased view of the reality. There are lows and highs, but in the long term - stock price roughly follow (or anticipate sometimes) the underlying business. GameStop is a totally unsignificant, albeit very publicized, stock. Btw, it was nosediving not because some Wall Street bro had decided to bet against but ... because it has become a really shitty business. It sill is. If you take all companies in the S&P 500, with some irrationnal exceptions (hey Tesla...), you will find that most prices x nb shares available, correlate very closely with the underlying company's profit and revenues.
- FreakLegion 2y ago
  S&P 500 company P/E ratios range from something like 2 to 500+, not counting the NaNs. You're right that in the aggregate things aren't particularly crazy, and it's definitely not true that "most stock prices are pure imagination", but there are still a lot of pretty imaginary stock prices (hello, CrowdStrike)!
- znpy 2y ago
  > GameStop is a totally unsignificant, albeit very publicized, stock. Btw, it was nosediving not because some Wall Street bro had decided to bet against but ... because it has become a really shitty business. It sill is. GameStop is the only one that rose to in the news because of /r/WallStreetBets. You should wonder how many other companies are in a similar (if not the same) situation.

by znpy 2y ago

TheAlchemist 2y ago

That's a very biased view of the reality. There are lows and highs, but in the long term - stock price roughly follow (or anticipate sometimes) the underlying business. GameStop is a totally unsignificant, albeit very publicized, stock. Btw, it was nosediving not because some Wall Street bro had decided to bet against but ... because it has become a really shitty business. It sill is. If you take all companies in the S&P 500, with some irrationnal exceptions (hey Tesla...), you will find that most prices x nb shares available, correlate very closely with the underlying company's profit and revenues.

FreakLegion 2y ago
S&P 500 company P/E ratios range from something like 2 to 500+, not counting the NaNs. You're right that in the aggregate things aren't particularly crazy, and it's definitely not true that "most stock prices are pure imagination", but there are still a lot of pretty imaginary stock prices (hello, CrowdStrike)!
znpy 2y ago
> GameStop is a totally unsignificant, albeit very publicized, stock. Btw, it was nosediving not because some Wall Street bro had decided to bet against but ... because it has become a really shitty business. It sill is. GameStop is the only one that rose to in the news because of /r/WallStreetBets. You should wonder how many other companies are in a similar (if not the same) situation.