• WhatsTheHoldup@lemmy.ml
    link
    fedilink
    English
    arrow-up
    1
    arrow-down
    1
    ·
    3 days ago

    AKA a bubble.

    The bubble grows while there is actual growth underneath to push it. When the actual growth stagnates, any growth in the bubble is putting more and more pressure on the stock until minor fluctuations can domino into mass panic.

    Look at Enron for an example of this in action. It happens quick.

          • WhatsTheHoldup@lemmy.ml
            link
            fedilink
            English
            arrow-up
            1
            arrow-down
            1
            ·
            3 days ago

            the financial growth of the company does not come anywhere close to justifying the astronomical growth of the stock price.

            it’s not a bubble

            It’s either a bubble or not. You can’t have it both ways.

            I think I’m done with this.

            • Ulrich@feddit.org
              link
              fedilink
              English
              arrow-up
              1
              ·
              3 days ago

              It’s either a bubble or not.

              What did I say in the comment you just replied to?

              • WhatsTheHoldup@lemmy.ml
                link
                fedilink
                English
                arrow-up
                1
                arrow-down
                1
                ·
                edit-2
                3 days ago

                I get it. We’ve done this circle before.

                You’re going to say “it’s not a bubble”.

                I’m going to ask “so is the stock price accurate”?

                You’re going to say it’s a bubble without using the word bubble “any investor can tell the price is skyrocketed above what it should be worth”.

                And then like the Patrick/Man Ray meme I’m going to say “so it’s a bubble” which you will then respond “no” to and we will repeat the circle.

                I said I’m done.

                • Ulrich@feddit.org
                  link
                  fedilink
                  English
                  arrow-up
                  1
                  ·
                  3 days ago

                  I’ve explained several times now exactly how and why it’s not a bubble. If you have problems understanding basic English, that’s not something I can help you with.