Everything is going down!
Companies report good earning but still the share prices go down even if they beat estimates.
Is it just a temporary sentiment (Covid, USA elections) or is it another burst bubble?
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The whole market is down even shares that are under or fairly priced, so would not suggest a bubble burst yet, some say tech is a bubble now but they are no more affected today/recently than other industries.
A companies share is only worth as much as someone is willing to pay for it…come burst bubble or whatever…and tomorrow is another day…right
Most of those beats are lower revised estimates. Many companies have either muted growth YoY or decline in Revenue/EPS in comparison to 2019.
So gotta go case by case, some on other hand were priced for perfection, so if one Q is not perfect we have mini crash. See FSLY.
Anyway garage sale is about to occur once again it seems.
Yes I had my eye on FSLY today, haven’t done enough reading on it to take a position but its on my radar to watch as $70 is a touch lower than where it has found support previously in swings last few months.
But is it lower on something already way to high?
The short squeeze was so sharp that funds were selling long positions in stocks to pay for the losses, which contributed to a slide in Wall Street’s main indexes.
The growing mobs on Reddit’s WallStreetBets forum and other favoured social-media destinations are leaving some serious wounds in the hedge-fund space. Melvin Capital Management started 2021 with a loss of about 30% because of short positions on GameStop Corp. and other companies that went awry. Citron Capital’s Andrew Left, a popular target on Reddit, said on Wednesday his firm closed out of a GameStop short bet “at a loss of 100%.”
“One of the surest signs that a bubble is close to bursting is when the retail investor piles in with leverage,” says Albert Edwards, at the investment bank Société Générale. “And if the retail warrior millennial mob are angry now, wait until they lose their shirts in any market collapse.”
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In fairness it’s not just in institutions it’s the majority of investors, wether it be institutional or retail.
You know stocks don’t always rise right …
A bubble hasn’t burst since 2000 dot com so it’s not exactly a normal occurrence. When we are in a bubble you won’t think we are … so when people stop talking about bubbles and you no longer see them on Bloomberg start to be concerned.
Whether this starts a 40% drop into a bear market is just part of the market cycle.