Re:Tesla drops 7% after Goldman Sachs says the stock is wort...
by tcoppi on Wednesday July 05, 2017 @06:54PM
(#14706794)
Not sure why you're being downvoted, I don't think you are wrong. Possibly the misunderstanding comes from a slight technicality - markets exist because buyers and sellers like a convenient place to trade. When buyers and sellers convene they arrive at a market clearing price, which is by definition the value of a company at that time. But finding that value is not the purpose of a market, and the fact that there are many varying opinions as to what the value of a company at any given time should be is what makes a market in the first place.
The stock market is fundamentally not meant to be an algorithm mapping company statistics to valuation. Treating it as such is nonsensical.