Comment on 5 Signs the AI Bubble is About to Burst
suicidaleggroll@lemmy.world 13 hours agoit’s based on what people think the company will be worth in the future
Not a single person in their right mind thinks that Tesla will ever be worth its current $1.3T market cap. Stock price is based on whether the market movers (not you or I) think that the price will be higher or lower a few weeks/months from now, that’s it. The actual intrinsic worth of the company makes no difference.
Ilovethebomb@sh.itjust.works 12 hours ago
As someone on r/Wallstreetbets once said, I can stay irrational longer than you can stay solvent.
There’s enough people who genuinely believe the company is worth that to keep the value high for a very long time.
suicidaleggroll@lemmy.world 12 hours ago
I don’t think there are. I just think there are a lot of people who believe they’re going to be able to get in and out before the Tesla bubble pops.
rc__buggy@sh.itjust.works 11 hours ago
“greater fool” theory. Just gotta get out and leave someone else holding the bag. Easy to see with crypto rugpulls.
Ilovethebomb@sh.itjust.works 11 hours ago
That’s also a possibility.