Sure, but then so is pretty much every aspect of the stock market, IMHO. It's a tool with all sorts of terrible flaws when it comes to capital allocation. A single company being overvalued without a safe way to bet against mass delusion of the public isn't that large of a flaw compared to the systematic over valuations and under valuations, IMHO.

This isn't to say that it's not without its uses, but we should be aware that it has huge problems even if we don't know of a way to fix them yet.