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.
>> 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...