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A comment on Meta Reports Fourth Quarter and Full Year 2022 Results. Parent comment

Re:Meta Reports Fourth Quarter and Full Year 2022 Results by dd36 on Wednesday February 01, 2023 @04:49PM (#34618375)
Markets measure the tiny fraction of buyers and sellers on a given day and ignore the super majority of holders. It almost feels like length of ownership should be more determinative of price movements than anything else. If long-term holders start selling, it’s concerning.
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Re:Meta Reports Fourth Quarter and Full Year 2022 Results by somethoughts on Wednesday February 01, 2023 @05:37PM (#34619024)
It almost feels like length of ownership should be more determinative of price movements than anything else.

>> Length of ownership AND relatedly original cost basis. I think a lot of stocks can seem to defy gravity (i.e. high PE and/or high P/FCF) when the founder and the early investors HODL stocks. At $0.0001 per share, HODLing (in say TSLA, META, MSFT, BTC) is easy since there is/was no upfront capital paid in and holding has essentially no cost basis - so there's no need to act like rationally like a later stage investor.

>> Founders and early investors can easily own up to 40-50% of the company and really its only when the founder retires/starts diversifying and the founder and early investors start to unload - does price discovery occur on the entirety of the shares outstanding.[1]

[1] Mark Zuckerberg Sold Facebook Stock Nearly Every Weekday Last Year For Almost 11 Months https://www.forbes.com/sites/rachelsandler/2022/01/06/mark-z...

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Re:Meta Reports Fourth Quarter and Full Year 2022 Results by dd36 on Wednesday February 01, 2023 @09:36PM (#34621320)
Agree. I think that fully explains all of TSLA’s movement. Mostly HODL but then Elon had to sell into light purchasing. Since he stopped, purchasing again outpaces selling so we get a steady rise.
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Re:Meta Reports Fourth Quarter and Full Year 2022 Results by rcme on Wednesday February 01, 2023 @04:57PM (#34618496)
> Markets measure the tiny fraction of buyers and sellers on a given day and ignore the super majority of holders.

Not really. The decision to not sell and to not buy is itself reflective of the price. If a stock is super cheap, people will buy. If the stock is priced fairly or overpriced, few people will buy. Same goes for selling.

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