Michael Burry warning of the biggest market bubble in history

Re:Michael Burry warning of the biggest market bubble in his... by bob33212 on Wednesday June 16, 2021 @03:42PM (#27532608)

Growth Stocks are not priced based on current profits, but future growth and profits. When I bought GOOG in 2005, the consensus was that GOOG was overpriced because they didn't have a lot of revenue. When I bought TSLA in 2014 the consensus was that another automaker would beat them or buy them before they were very profitable. In 2024 when TSLA is at $1500 and people are saying that it is overpriced because it only makes 5 million cars a year, I'll still be explaining this same principal.

[ Parent | on HN ]

Re:Michael Burry warning of the biggest market bubble in his... by MR4D on Wednesday June 16, 2021 @07:59PM (#27534847)

But the marginal cost of an additional dollar of revenue for Google was close to zero - for Tesla it’s much higher.

Google’s lead grew as it grew (Metcalf’s law). Tesla’s won’t for the same reason that everyone doesn’t want to drive the same car (a the Model T issue). [0]

So we have seen this story before, but some people are attached to different points of it.

[0] - http://www.autolife.umd.umich.edu/Design/Gartman/D_Casestudy...

[ Parent | on HN ]

Re:Michael Burry warning of the biggest market bubble in his... by andrewmcwatters on Wednesday June 16, 2021 @03:50PM (#27532702)

Maybe you missed it, that’s fair value at future cash flows at about an 8% discount rate.

[ Parent | on HN ]

Re:Michael Burry warning of the biggest market bubble in his... by bob33212 on Wednesday June 16, 2021 @03:54PM (#27532754)

What margins and volumes on the Y, CyberTruck, and Model A, FSD subscriptions are you using in that calculation for 2025?

[ Parent | on HN ]

Re:Michael Burry warning of the biggest market bubble in his... by rualca on Wednesday June 16, 2021 @07:42PM (#27534747)

> In 2024 when TSLA is at $1500 (...)

Since the start of 2021,Tesla tanked from $880 to around $660.

[ Parent | on HN ]