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The stock, and subsequently the stock market, is so detached from reality. For the life of me, I can’t understand why investors will literally put a 100x premiu
by TrackerFF 4mo ago
The stock, and subsequently the stock market, is so detached from reality. For the life of me, I can’t understand why investors will literally put a 100x premium on Musk, and the things he touches. I feel like I’m living in some alternative universe.
- __patchbit__ 4mo agoSpaceX will cocoon the planet with next level new accelerated technology the way baseload grid electricity supply took 300 years to achieve.
- tennfown 4mo ago[flagged]
- AnimalMuppet 4mo agoIn a word, baloney. What, exactly, is the "next level new accelerated technology"? That's a lot of hype-y buzzwords, but what does it mean? What's the actual technology? Starlink? I mean, we already have internet. Is Starlink that much better, to deserve this glowing description? Or is it some other tech? If so, what is it? If you can write that glowingly, can you put some substance behind it? Or is it just hype?
- elpocko 4mo ago[flagged]
- hdhdhsjsbdh 4mo agoYou seem to live in the real reality, and presumably people care about what you think there because it’s actually real. So why not enlighten us, help explain it to us deluded people? Or you can just be rude and vague.
- deleted 4mo ago[deleted]
- small_model 4mo ago[flagged]
- TrackerFF 4mo agoI live in a country (Norway) which has been a early-adopter market for EVs. In 2014 Tesla cars were endemic, you could see them everywhere. I was a big believer in Tesla cars. But things obviously changed. We're still a lead market as far as Tesla sales go, but right now it is just another car. There's absolutely no rationale to automatically go for Tesla. Which is why I find it incredibly difficult to see how Tesla is valued. The Tesla market cap is more than all other EV producers combined. Musk evangelists will now yell "Self-driving cars! AI! Robotaxi!", and rationalize that the value behind Musk is potential. The potential that his products will be some fantastical thing in the future.
- kcb 4mo ago> In 2014 Tesla cars were endemic, you could see them everywhere Tesla sells like 8x the number of cars in Norway today than they did in 2014.
- cosmicgadget 4mo ago5% float and index inclusion. Basically controlling both the supply and demand levers.
- rendang 4mo agoIf you're right, that's great news for you, as you can make tons of money buying Spacex puts
- UncleMeat 4mo agoNot if people continue to have the 100x premium on Musk. Puts only make sense if the market returns to rationality.
- echoangle 4mo agoMarkets can remain irrational longer than you can remain solvent. - John Maynard Keynes
- eudamoniac 4mo agoThis quote refers to shorting; it's not applicable to every bear position anyone ever attempts to take. You won't go insolvent buying puts.
- echoangle 4mo agoYou won’t go insolvent but you’ll consistently lose money every time the stock doesn’t go down.
- eudamoniac 4mo agoYep, and if you buy stocks you'll consistently lose money when the stock doesn't go up.
- echoangle 4mo agoOnly in opportunity cost, if you buy puts you actually lose dollars.
- moralestapia 4mo agoWhat a great quote man. First time I read something like this. And thanks for crediting the author, now I can go learn more about him.
- newaccountman2 4mo agoThere is no reason to be surprised investors aren't always that rational, though it is weird how extra giddy they are to simp for Musk in particular. Company literally does not make money, and his other major company is getting dumpstered in its market too.
- Dig1t 4mo agoHave you watched a Starship launch? The more I understand the incredible feats of engineering they are performing the more bullish I become.
- newaccountman2 4mo agoIt doesn't make money. https://www.youtube.com/watch?v=-X6YzlY_8tM https://www.youtube.com/watch?v=-X6YzlY_8tM
- Dig1t 4mo agoStarship is still in development. Do you think the next generation of the iPhone is a waste of time because it doesn't make money yet? The stock price reflects the potential of the business in the future as well as its current concrete value.
- tonyhart7 4mo ago"It doesn't make money." if that's the reason, why people invest in amazon then since Amazon literally need 20 years for that company to be profitable because they are not targeting dividend that's why, they expect the exponential growth by re-investing profit to grow the business at scale we literally live in YC subs where (almost)every startup isn't profitable either but VC still invest, I wonder why you write this
- tastyface 4mo agoStarship and anything space related is like 5% of the valuation.
- TrackerFF 4mo agoSpace X is first and foremost being valued on their AI data centers.
- iancmceachern 4mo agoWhich make no physics sense
- elpocko 4mo ago[flagged]
- Chinjut 4mo agoThe stock market is not definitionally "reality" in the sense being used. It's perfectly fine to look at the stock market and consider it "detached from reality", in the sense being said.
- deleted 4mo ago[deleted]
- legitster 4mo agoSpaceX had this similar mystique to where owning a private share was something rich people bragged about like having a rare Lamborghini. A lot of these modern bubble stocks are underpinned by a bunch of intangible collectibility reasons that realistically only exist because of a huge cash glut in the US stock market. Maybe it goes on for a long time, but realistically as baby boomers start drawing down on their retirement portfolios and/or dying there's reason to believe money will start leaving the markets in the next 20ish years.
- deleted 4mo ago[deleted]