Mito
Member
- Joined
- Dec 10, 2016
- Messages
- 2,554
Correct because the stock market tries to predict the future, but the future is unpredictable. Many new companies have a build up initially in the stock price in anticipation of future profit, but often it doesn’t materialize and people lose money. Stock prices correct over the long term and follow profits pretty closely.Doesn't matter what explanations or excuses are made...... the stock market hit ALL TIME HIGHS right as unemployment was SKYROCKETING. Even if the staggering 50 Million job loss number was "priced in," the fact remains, it has nothing at all to do with the actual economy, that being goods and services that are traded and sold. And some of the darling stocks prove this.
Tesla didn't have a "profitable" year until 2020, and the stock price in December of 2019 was still near $200, giving a company that NEVER turned a profit in a year a market cap of $167 Billion. Insanity. And the truth is, the profit in 2020 didn't come from selling cars-
Tesla's dirty little secret: Its net profit doesn't come from selling cars
Tesla posted its first full year of net income in 2020 -- but not because of sales to its customers.www.cnn.com
Moderna is another excellent example of this fraud economy. They never even brought a single product to market before 2021, but as Anthony Colpo notes-
The Disturbing Truth About Moderna and its mRNA COVID-19 Vaccine: Part 1
The COVID-19 vaccine story is currently dominated by three drugs: The Moderna and Pfizer-BioNTech mRNA drugs, and the Oxford-AstraZeneca vaccine. I recently dissected the dubious science behind the latter two drugs here and here. As my previous articles explained at length, the science...anthonycolpo.com
The only issue there is that that quote isn't quite fair to Enron. It was dodgy accounting that brought that company down. But, at least they had an actual product/service that they sold for several decades.
If you compare Moderna to a company like IdealabsDC (which are in a roughly similar sector), the valuation is even more outrageous. IdealabsDC has brought more than 30+ products to market, despite being founded AFTER Moderna. Based on Products alone, why isn't IdealabsDC sitting on a Market Cap of more than a trillion dollars?
Again, the stock market has as much to do with the real economy as a guy winning at Monopoly has to do with his business acumen.