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the bubble doesnt mean they are worthless only that after a pop the value of stock will drop significantly. it is out of their control if people overvalue the
by order-matters 21d ago
the bubble doesnt mean they are worthless only that after a pop the value of stock will drop significantly. it is out of their control if people overvalue the stock, and thats what creates the bubble which will eventually need to pop for self correction - but might trigger a massive oversale bringing the stock below actual value and causing all sorts of problems that will challenge the solvency of the company (basically challenging their liquid funds vs how much debt that they backed to their stock value). if they survive that then a bounce back is expected and buying while they were low would get you profit again. if they overleveraged themselves during the bubble bc they bought into the hype themselves, then they could face serious financial troubles and be susceptible to getting bought out.
- tuesdaynight 20d agoBut isn't that supposed to happen when you create a hit product? I imagine some people said similar things about Apple when iPhone started selling like water, but I don't think that it was the majority like here