Remember when Deepseek came out and every AI adjacent equity dropped 20%? Or maybe the recent Synopses drop due to weakish earnings?
So many equites are one missed earnings, slashed guidance, or negative news story away from getting a 20-30% haircut. Some of the reactions we’ve seen so far is evidence enough that valuations are stretched to absurd levels.
ICLazeru on
Two things can be true. Today’s companies can be operating fundamentally differently than companies of the past, but also be overvalued at the same time.
I would argue that there are systemic reasons that the market is near constantly overvalued, one being that many people have a vested interest in making sure the line goes up no matter what, even if the reason is questionable.
LavisAlex on
The AI environment feels like weedstocks, but somehow supercharged and prolonged.
Like maybe there is something there and its likely thay confusion and misunderstanding thats contributing to it?
Everyone knows Tesla for example should not be as highly valued, and has even been deceptive with its auto pilot yet people still hold and defend to this day.
Its as if these stocks are kept like gold or as a repreaentation of the buyers individuality rather than a business model
1_BigPapi on
Now divide CAPE by global money supply. Yea that’s not the whole picture but it’s very significant. This isn’t accurate as a standalone data point.
Repeat bc bot says too short Now divide CAPE by global money supply. Yea that’s not the whole picture but it’s very significant.
4 Comments
Remember when Deepseek came out and every AI adjacent equity dropped 20%? Or maybe the recent Synopses drop due to weakish earnings?
So many equites are one missed earnings, slashed guidance, or negative news story away from getting a 20-30% haircut. Some of the reactions we’ve seen so far is evidence enough that valuations are stretched to absurd levels.
Two things can be true. Today’s companies can be operating fundamentally differently than companies of the past, but also be overvalued at the same time.
I would argue that there are systemic reasons that the market is near constantly overvalued, one being that many people have a vested interest in making sure the line goes up no matter what, even if the reason is questionable.
The AI environment feels like weedstocks, but somehow supercharged and prolonged.
Like maybe there is something there and its likely thay confusion and misunderstanding thats contributing to it?
Everyone knows Tesla for example should not be as highly valued, and has even been deceptive with its auto pilot yet people still hold and defend to this day.
Its as if these stocks are kept like gold or as a repreaentation of the buyers individuality rather than a business model
Now divide CAPE by global money supply. Yea that’s not the whole picture but it’s very significant. This isn’t accurate as a standalone data point.
Repeat bc bot says too short Now divide CAPE by global money supply. Yea that’s not the whole picture but it’s very significant.