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Hertz, the original meme stock, is turning out to be worthless

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Re: Hertz, the original meme stock, is turning out to be worthless

#31

Post by elliekelly »

klodolph wrote: post #22
Judgmentality wrote: post #11

Earlier quoted context omitted.

At the end of the day, people are betting on what they believe (or throwing away their money for the lulz). I genuinely, no bullshit, think TSLA is more irrational than GME, and has been for years. I put my money where my mouth is and I'm up 5x in 2 weeks. I know it won't last, but hey TSLA is crashing too. Nothing lasts forever.

I agree that TSLA is irrational, and I think that this is true regardless of whether you think there are more gains to come. My impression of TSLA investors is that many of them just want to be a part of the future, and many others are trying to make money off the volatility & irrationality.

I think the cult of personality plays a part in it, too. Tesla makes cool, futuristic cars and has a rabid user base (and even a rabid fan base of people who can’t afford to be users) but even still I don’t think the valuation would be anywhere near where it is today without all of the Musk super fans & Musk initially fanning the flames with his war against short-sellers.

Re: Hertz, the original meme stock, is turning out to be worthless

#32

Post by [deleted] »

croes wrote: post #26
airstrike wrote: post #9

Earlier quoted context omitted.

BTC is not a stock so I really don't follow why people keep treating it like it has some underlying value

Like most stocks BTC's value depends on the buyers hope of a rise of the value. Buy low and sell high. For the original function of stocks, support a company and get a share of the profit, you are right about BTC.

[deleted]

Re: Hertz, the original meme stock, is turning out to be worthless

#34

Post by Judgmentality »

waprin wrote: post #30
Judgmentality wrote: post #19

Earlier quoted context omitted.

I think it's obvious that I am holding a substantial amount of GME right now, and I think I should disclose that. Ryan Cohen, the guy who founded Chewy, is on the board for GME and leading an initiative to transform Gamestop into an e-commerce store. In other words he wants to compete directly with Steam, and while many don't realize it yet, Amazon. And this is one of the only people in history who has successfully b…

Competing with Twitch is not realistic and I’m surprised you think it’s bad. Facebook and Microsoft have both spent huge sums of money trying to and failed. And both those companies have deep engineering talent which GameStop does not and it will not be trivial to compete with those companies for engineers. Plus livestream is just really expensive in terms of compute and network costs. Finally and most importantly, T…

Everybody I know that uses twitch hates it. Like seriously, it's really bad. The conversations streamers have on discord are very different from what they'll say while streaming. They use it because there is no alternative. I am well aware that others have tried to compete and failed.

But there is a market and nobody likes the only player. Eventually somebody is going to figure it out. And I am extremely confident it won't be Amazon. I'd short twitch in a heartbeat if it weren't propped up by the most valuable company on Earth.

Re: Hertz, the original meme stock, is turning out to be worthless

#35

Post by camjohnson26 »

Judgmentality wrote: post #11
tacheiordache wrote: post #6

Earlier quoted context omitted.

GME is not bankrupt yet (it is indeed overpriced and comparable to HRTZ), but TSLA and BTC? They don't belong to the same categories. TSLA and BTC will see a lot of gains to come. Eventually without a definite date what goes up comes down but it'd be silly to not take a piece of the pie yourself and keep your savings in cash...

At the end of the day, people are betting on what they believe (or throwing away their money for the lulz). I genuinely, no bullshit, think TSLA is more irrational than GME, and has been for years. I put my money where my mouth is and I'm up 5x in 2 weeks. I know it won't last, but hey TSLA is crashing too. Nothing lasts forever.

All this retail interest in meme stocks is gambling, plain and simple. More people entering the market creates a Ponzi effect where new entrants pay for the gains of holders, but by definition this is unsustainable. You can see this basically everywhere in the economy but the meme stocks are the most obvious.

Not financial advice, I thought Tesla was laughably over valued at $40 a share, never bet more than you’re willing to lose.

Re: Hertz, the original meme stock, is turning out to be worthless

#36

Post by PragmaticPulp »

croes wrote: post #26
airstrike wrote: post #9

Earlier quoted context omitted.

BTC is not a stock so I really don't follow why people keep treating it like it has some underlying value

Like most stocks BTC's value depends on the buyers hope of a rise of the value. Buy low and sell high. For the original function of stocks, support a company and get a share of the profit, you are right about BTC.

That’s not really an accurate comparison. Stocks are ownership in a company, which is still subject to all of the realities of operating a company. We can’t simply continue trading Hertz stock as a speculative gamble when the company goes under.

Yes, cycles of hype and supply and demand do distort stock prices, but it’s still a capital allocation market. GameStop can choose to sell shares into the hot market, much as AMC did, to raise money. Buyers of those shares are allocating capital into the company.

One of the draws of Bitcoin as a speculative instrument is that there are no fundamentals. Without fundamentals, there is no mechanism to suggest if it’s undervalued or overvalued. The only thing a Bitcoin purchase funds is more energy expenditure on mining.

Re: Hertz, the original meme stock, is turning out to be worthless

#37

Post by saalweachter »

croes wrote: post #26
airstrike wrote: post #9

Earlier quoted context omitted.

BTC is not a stock so I really don't follow why people keep treating it like it has some underlying value

Like most stocks BTC's value depends on the buyers hope of a rise of the value. Buy low and sell high. For the original function of stocks, support a company and get a share of the profit, you are right about BTC.

The "original function" of stocks hasn't gone away. The S&P 500 paid out half a trillion dollars in dividends last year, and performed another half trillion or so in stock buy-backs.

Trading happens on the pure derivative of stock prices, yeah, and people get rich off of it, sure, but ignoring the trillion dollars a year that flows from the profits on the economic activities of the S&P 500 back to the investors in the stock is ... oversimplifying things.

Re: Hertz, the original meme stock, is turning out to be worthless

#38

Post by booleandilemma »

systemvoltage wrote: post #33

I want us to get back to reality and fundamentals. These days it feels like the entire fabric of society is falling apart.

"In the short run, the market is a voting machine but in the long run, it is a weighing machine."

https://www.goodreads.com/quotes/831517-in-the-short-run-the...

Re: Hertz, the original meme stock, is turning out to be worthless

#39

Post by camjohnson26 »

Mc_Big_G wrote: post #23
VHRanger wrote: post #3

Obviously? The company was bankrupt. People who bought HRTZ after bankruptcy had to have known it was a game of financial musical chairs, much like GME, TSLA or BTC.

Hit me up when BTC goes bankrupt.

BTC’s version of bankrupt is when transaction fees aren’t worth enough to incentivize mining.

Re: Hertz, the original meme stock, is turning out to be worthless

#40

Post by rjbwork »

systemvoltage wrote: post #33

I want us to get back to reality and fundamentals. These days it feels like the entire fabric of society is falling apart.

It's not going to happen for a while yet. There is more money chasing fewer opportunities so we see equity asset inflation. This is exacerbated by increasing industrial centralization and the longest period of low interest rates on record, causing the average retail investors' only logical choice to be to put it in the market - be that index funds or individual "meme stocks". And if you don't? Inflation will slowly eat away at the money you've worked hard for. Classic TINA and "No Good Choices"/Catch-22.

But hey, I've 4x'd and 2x'd my GME bets on both spikes so who am I to talk, really?

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