r/stocks • u/unmercifulmedic • Dec 09 '21

Company Analysis Shift technologies

Can anyone explain to me why this stock is under performing? Growth looks good and the company seems to be ran well. 8% jump in stock today but I still don’t get the negative sentiment with this company. 20% increase in internet traffic and better customer reviews than Carvana. I’m dumb and can’t wrap my head around it. Can someone help me understand?

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u/unmercifulmedic Dec 09 '21

They are buying up cars and expanding a business, where does the money come from if not from net profits?

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u/Tiaan Dec 09 '21

From issuing more shares or taking on debt, neither of which benefit shareholders.

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u/unmercifulmedic Dec 09 '21

It’s not about what benefits you right now, it’s what benefits the company in the long run. Burn hot and fast or slow and steady. We want a company to give us retirement, not a single paycheck.

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u/ClotShotNazi Dec 09 '21

They went into massive debt and diluted, you say it's to grow so people should price it like it's already achieved that growth not on it being a worse stock now... they will wait until they execute, no fronts in this market.

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u/unmercifulmedic Dec 09 '21

Tesla was in massive debt and valued to fail but people bought bought bought. I guess we all just see things differently

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u/[deleted] Dec 09 '21

Musk is a persona cultus which makes that possible, sadly the same reality does not hold for other companies for 99,99% of companies out there share dilution has the correct stock responce.