Re:SoftBank unmasked as ‘Nasdaq whale’ that stoked tech rally
by fakedang on Friday September 04, 2020 @03:54PM
(#24378346)
Tesla was growing before the crisis. Largely due to their Chinese gigafactory, which is a pretty big deal, since it shows a.) They will be in the good books of China for the time being. Till their eventual tech ripoff at least. b.) They have the potential to gain the same brand value that Apple accrued in China. Definitely don't deserve the current valuation though - I was lucky I happened to be holding some when we bought some after buying my first car.
The kind of options plays on WSB are insane tbh. I don't mind putting my eggs in one or two baskets, as long as they are stocks of steady companies, but options? No way.
Re:SoftBank unmasked as ‘Nasdaq whale’ that stoked tech rally
by DarmokJalad1701 on Friday September 04, 2020 @05:16PM
(#24378971)
I doubt they care much about the "eventual ripoff". Their strategy is to out-pace competitors through innovation. It is the same reason they open sourced almost all their patents.
I agree though that due to what appears to be a bubble, these investments aren't that safe at the moment. It appears that these type of stocks have benefited recently by retail investors entering the market and piling in. ( https://thehill.com/policy/finance/510796-are-trading-apps-p... -- though, as the article points out, the Robinhood investor bubble is smaller than the effect of the Fed's QE etc. ) Under normal valuation, Tesla at this point I don't think would be considered "speculative" -- risky, but not as risky as some. But a P/E ratio of 1000+ even after this recent dip is IMHO pretty difficult to justify.
r/wallstreetbets is pretty unreal to me -- many people are focusing on high-risk options on these heavily valued stocks, and (by the comments) appear to be putting a lot of their "eggs" in only one or two "baskets", to use the popular phrase. It's not ending well for some of them, judging from some of the posts.