Nvidia adds $277B in market value, Wall Street's largest one-day gain in history

Re:Nvidia adds $277B in market value, Wall Street's largest ... by adam_arthur on Friday February 23, 2024 @12:20AM (#39477260)

It's not about whether they'll grow, it's about whether they'll grow more than is priced in

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Re:Nvidia adds $277B in market value, Wall Street's largest ... by mnky9800n on Friday February 23, 2024 @04:16AM (#39478559)

Doesn't that assume the market is perfectly able to assess value?

As an example the market decided Netflix was a terrible value when they announced they were a video streaming company in like 2008ish losing around half their value. Except we all know now that was not a priced in moment.

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Re:Nvidia adds $277B in market value, Wall Street's largest ... by adam_arthur on Friday February 23, 2024 @08:17AM (#39480192)

That's an example of "growing more than is priced in"

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Re:Nvidia adds $277B in market value, Wall Street's largest ... by mnky9800n on Sunday February 25, 2024 @09:33AM (#39501115)

I thought if the market is efficient then everything is always priced in?

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Re:Nvidia adds $277B in market value, Wall Street's largest ... by adam_arthur on Monday February 26, 2024 @12:27PM (#39514096)

The market is clearly not efficient, otherwise there would be no opportunity for alpha.

You can go onto the market today and buy like-kind stocks at double digit discounts to valuation just because they're smaller cap/lesser known. e.g. Retail REITs, where the business and risks are almost identical.

EMH as commonly interpreted is clearly wrong in my view.

What is true is that the majority of people can't beat the market picking stocks, but that doesn't mean there aren't observable inefficiencies. Just that most people don't care or know how to observe them

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