3 ms·
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
by 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 agoS&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.