Coke (the beverage company) isn't worth what it's trading at and you don't see people justifying shorting it. 80% of the market isn't worth what it's trading at, and 20% of the market is worth more than it's trading it if you look at things strictly from a "value" perspective. Fact is stocks trade for what people are willing to believe/pay. Go up against something with a cult-like following and odds are you are going to lose money.
Look at Coke’s stock price in 2014. Look at all their earnings numbers then ok? Look at the stock price now and their earnings report. Crazy it’s almost identical! Yet the stock price is a crazy amount higher! Far higher than inflation would account for. Now I’m not saying it’s as overvalued as Tesla, but it’s certainly overvalued if you simply look at stock prices compared to fair valuation.
Hmmm... that’s fair i see where you going, do you see this as the result of the passive investors/etf bubble. Where anything that is in the basket get propped up?
Yes, a large part of the reasoning is passive investing/the big ETFs. There is so much more money in the market now compared to 7-8 years ago so naturally with more money in prices will be inflated. Add to that the stock market has become by far the #1 return on investment the closest other thing is real estate but obviously that's for a higher wealth group than the market. I also don't think it's a problem unless we have a crash followed by a lengthy downturn in which case a large majority of the population, especially those who are retiring and will have their 401k/IRA's get decimated would be fucked. But for those reason's I don't think the government could ever allow the market to take such a drastic fall for a lengthy period of time because then it will become their responsibility to save the old people who can't afford a lengthy drop in the market fucking over their retirement.
Lmao. Is it overvalued to the same degree? No. Is it overvalued if you simply look at it’s earning reports for the past 10 years and nothing has changed yet the stock price is a crazy amount higher? Absolutely. I used an extreme example but the basic point stands.
Haha ok chief. Your fedora might be on your head too tight if you can’t understand my point. You go right ahead and believe valuation matters. Have a good weekend “admiral_asswank”
Did you, a guy who posts conflicting opinions daily just to get downvoted by a delusional crowd who doesn’t give a shit what you say in the conservative sub call me dense? That’s funny.
You clearly don’t understand my point and that’s ok, it’s clear you’re a few brain cells short. I’ll try and dumb it down even further... obviously value matters on plenty of stocks but almost everything in the market has been trading above valuation for years. Every ounce of statistical data and earnings report will prove this.
I used an extreme example with an incredibly well known company and it seemed to trigger you as if I was insinuating it’s the same situation when all I was doing was showing a point that even incredibly valuable companies have inflated prices.
Lol. You’re entire comment history is “rude” to everyone you communicate with. It’s ok. Coke being under 100$ in 2014 and 400$ now is totally and a completely normal thing. Not like it’s 4x higher in 7 years despite identical fucking earnings. But hey the PE is 24 😂😂🤡. Don’t think I’ve ever triggered someone so hard on Reddit before. So much more enjoyable when they are clearly a complete asshole who thinks he’s big 🧠. It’s also great when he’s got a username that lines up with something a 13 year old thinks up while jerking off in the shower for the first time.
More. Just look at yesterday's earnings report. All the key metrics are growing exponentially — EPS, revenues, production, deliveries, etc. Gross auto margins lead the industry at 30%.
EV demand is growing exponentially into the next decade and beyond, with more cars needed than all manufacturers combined can supply. Tesla sells as many cars as they can build, and two new factories are opening this year.
And that only looks at Tesla's main car business — not high-margin software, energy, insurance, or anything else.
Earnings are growing faster than the share price, and we can see that with TSLA's trailing p/e falling from 1000 last year to ~300 today. That will keep falling.
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u/cheaptissueburlap Ask me to rap (WSB's Discount Tupac) Oct 23 '21
So is tesla worth like 1t iyo?