This market to me seems very similar to crypto in 2017. Back then people just trickled into any new coin. My friend who made and lost hundreds of thousands told me he literally bought every new offering for months. Never researched them, never needed to.
PLTR is the new hotness stock right now. I’ve seen several people say they bought just because they couldn’t stand missing out on another one and don’t know anything about the company. Retail call option activity is substantial which has caused dealers to need to hedge by continuously buying more shares which.... pushes up the price, attracts new attention, and reinforces more call options which then.... pushes up the price!
I have a position in PLTR. I looked at their earnings report and honestly wasn’t even that impressed, but I’m not too good to make money on anything and my strong belief was that this was going to keep attracting more attention for at least a few weeks
but then come in the people who just get drunk on koolaid. I have seen people call the stock cheap because of its price (gets upvoted like crazy, it’s scary how many people trade without knowing market caps), I’ve seen people call for 1,000 by EOY 2021 and claim it to be conservative (would make it the second most valuable company in the world after Apple)
I have seen all kinds of voodoo math to make the stock seem cheap. The fact is it’s a 60 P/S. Which I’m not going to sit here and say stay away as someone with some richly valued tech in my portfolio, but I will never call Zoom cheap. To me it’s just disingenuous pumping or people that really think that stocks only go up and they’ve found the key to everlasting wealth
maybe this time is different.
Some background on what I mean by the call options comment, this is a great video from September
TD Ameritrade Network empowers investors with market news and programming that interprets real-time market insights, strategy tips, and platform tools.
tdameritradenetwork.com
Probably my favorite stock related tweet: