61–70 of 105 posts
TSLA stock is up over 7% after hours now. ~$15 billion of "value" created out of thin air. Sounds ridiculous.
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You have to standardize on some common granularity for strikes/expiration dates so that each symbol has sufficient volume so that the market would not get too sparse. The theory does not require it, but when you are building an exchange, I suppose that'd be of a practical concern to you. You want interchangeability in derivative contracts and don't want each individual contract to be a snowflake. There are "mini" opt…
Wouldn't make more sense to make contracts that control 1 share so that sparseness is minimized?
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So there is an alternative?
I left that sentence as it currently is despite the ambiguity. Btw, I have a Nigerian acquaintance who likes to discuss a business proposal with you. How do we contact you?
Does anybody else share my sort of shell-shock WRT Tesla? I'm one of those who thinks its stock (and probably all the big tech names) are in a bubble. But whenever I say that I get shouted down, downvoted, told I'm an idiot, etc. I'm hoping this comment is vanilla enough to be safe... just curious if others have had the same experience. To be clear: I'm not interested in debating the value of Tesla. I'm curious if ot…
If they can successfully enable fully automated self driving cars, then I think the value is entirely justified. See FaceBook. Disclaimer: I bought Tesla calls today and now assume I’m rich so your opinion may differ
Having a driverless car which can navigate through a city would be great, but it is a much more complicated problem to solve.
Speaking of splits, I love how Apple’s stock split justification is: “We want Apple stock to be more accessible to a broader base of investors.” https://investor.apple.com/faq/default.aspx Yet it’s one of the top stocks held on Robinhood (#3 at 700,000 users) https://www.robintrack.net/symbol/AAPL
Companies in the DOW tend to have share prices below $500/ share and most are under $200 and the DOW won't add companies with high stock values as a result (Apple was added only after their last split).
It's likely being in the DOW bolsters and stabilizes stock prices as a lot of indexes are based on a the DOW. It also brings a company a certain prestige.
Whether any of this affects the Apple board's decision to split the stock or not is entirely speculation... it just seems a far more likely reason than the idea that they are splitting to make it accessible to people with $500 they want to invest.
Speaking of splits, I love how Apple’s stock split justification is: “We want Apple stock to be more accessible to a broader base of investors.” https://investor.apple.com/faq/default.aspx Yet it’s one of the top stocks held on Robinhood (#3 at 700,000 users) https://www.robintrack.net/symbol/AAPL
“Accessibility” is always a bogus reason nowadays. Stock commissions are dirt cheap so there is little reason to buy in lot sizes anymore. If you have $320,000 in your account you can buy a single share of Berkshire Hathaway for less than a $10 commission. Stock splits are just a low grade attempt to pump up the stock price.
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I left that sentence as it currently is despite the ambiguity. Btw, I have a Nigerian acquaintance who likes to discuss a business proposal with you. How do we contact you?
Send 100 bitcoins to 16kUa2e6MMCSiaHnmH88zVkKwoTpgaNATE then I'll send 101 back with my contact details
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So there is an alternative?
Buy gold ;) I wonder why TSLA is compared to dot-com stocks. Tesla produce real, tangible things, with sale and resale value; same applies to their factories. They are in the "real sector", while dot-coms were (and are) in the "virtual" services sector propped by ad revenue. TSLA can be a bubble, but it must be a different kind of it.
Another reason to tell why Tesla's stock is in bubbly conditions is the timing. Why is it soaring up right now? Is there some event that makes it more likely that people buy cars? No. The current events actually point towards the opposite direction of a recession, where people don't buy new cars. But they are overruled by different events which are more about more about money not knowing where it should go.
This video makes some very interesting points on the "too much money in the markets" question: https://youtu.be/Im0rzTWplwU
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Is there any reason beyond legacy that option contracts come in 100 share bundles?
You have to standardize on some common granularity for strikes/expiration dates so that each symbol has sufficient volume so that the market would not get too sparse. The theory does not require it, but when you are building an exchange, I suppose that'd be of a practical concern to you. You want interchangeability in derivative contracts and don't want each individual contract to be a snowflake. There are "mini" opt…
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You are not alone. Regular (non-tech) stock market analysts are comparing current valuations with the dot-com bubble. But there is no TINA ( https://www.investopedia.com/terms/t/tina-there-no-alternati... ). The money needs to go somewhere.
TINA explains NASDAQ:TLSA "bubble" perfectly.