Why are so many unprofitable companies the best performing stocks this year?

Post by sharadov » Thu, Oct 15, 2020, 4:12 PM UTC

dmarlow wrote: post #27

sharkweek wrote: post #11

I don’t know much about the stock market outside of throwing any savings I can muster into a vanguard fund, but articles like this remind me of the scene from Silicon Valley where the Pied Piper team is talking about finding a revenue stream. Their investor, the Mark Cuban caricature, Russ Hanneman butts in and yells at them about the dangers of showing revenue and how it proves you might only be a 2x-er. "It's not a…

> Their investor, the Mark Cuban caricature, Russ Hanneman I didn't know that's what they had intended. I never once thought that's what they were going for.

Post by bvaldivielso » Thu, Oct 15, 2020, 4:12 PM UTC

john_moscow wrote: post #54

sharkweek wrote: post #11

I don’t know much about the stock market outside of throwing any savings I can muster into a vanguard fund, but articles like this remind me of the scene from Silicon Valley where the Pied Piper team is talking about finding a revenue stream. Their investor, the Mark Cuban caricature, Russ Hanneman butts in and yells at them about the dangers of showing revenue and how it proves you might only be a 2x-er. "It's not a…

>I don’t know much about the stock market outside of throwing any savings I can muster into a vanguard fund. You have just answered your own question. If enough people make financial decisions based on a specific metric, rather than their own understanding, of course they will be a whole industry of companies trying to game the KPI and make sure your uninformed dollar ends up in their coffers.

Post by d23 » Thu, Oct 15, 2020, 4:14 PM UTC

xoxoy wrote: post #56

nabla9 wrote: post #4

Small speculative unprofitable growth companies outside the major indexes are usually always the best performing stocks, because stocks in the same category are in the list of worst performing too. They have huge volatility.

lol at “small” Tesla has 10x’d from a year and now at a $420B valuation. That makes it one of the largest companies in the world (I believe top 15) All the companies that fit in this category like Carvana, Wayfair, Overstock etc are now at $10B-$30B valuations. Point is these are not small by any means.

Post by mdorazio » Thu, Oct 15, 2020, 4:18 PM UTC

santa_boy wrote: post #52

mdorazio wrote: post #10

"Almost one in five of these money-losing companies is up 100% or more this year. There are some huge gainers on this list including companies like Overstock.com (+1055%), Tesla (+429%), Peloton (+348%) and Moderna (+285%). But there are also plenty of big losers of these money-losing firms. More than one-quarter of these stocks are down 10% or more this year while almost 50 names have fallen 30% or more in 2020." So…

> For a meaningful analysis, you would need to dig into the winning stocks specifically and ask why they're up so much. IMHO rationalization of this is very random at best. Why is Zoom (up >600% YTD) really worth it? Most of the big tech cos. can replace Zoom overnight. I use Google Meet daily without the trivial bells-n-whistles that Zoom offers. Absolutely no adjustments needed! Jio in India (where I am from) would…

Post by bumby » Thu, Oct 15, 2020, 4:18 PM UTC

oregontechninja wrote: post #26

The volatility of the market makes for easy profits. Did an excercise on marketwatch in school one time. I traded random symbols that met my criteria and made a fat virtual profit. I kept it going after the experiment and realized the only reason I did well was because of the variability of that time for the market. I would kill to have some extra cash to invest right now/3 months ago, panicked laymen make investing…