alt Hacker NewsBased on the list of businesses at the top, the stock market seems like it rewards profit margin and profits, by businesses that sell meaningful products and services.
https://companiesmarketcap.com
Can you provide an example of any of the businesses on that are on that list due to "mass stupidity"? They all seem to operate factories, employ many highly qualified people, and make a material difference in many or even most people's lives around the world.
Meanwhile, SNAP has returned -14.98% per year to its shareholders since it IPO'd (Jun 3 2017), and at an $8.27B market cap, it makes up a negligible portion of any broad market index fund, so not sure how SNAP's shareholders have been rewarded by mass stupidity, especially given that the founders still own half of the business. They would have been far better off liquidating their shares and investing in SP500.
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I mean, that list has Tesla, which is overvalued by any plausible valuation approach.
Tesla is a great example. It’s 30% retail, 25% elon and insiders, and the remainder institutional, mostly index funds.
The investment thesis for Tesla is absurd. They built the market cap on hype and it got big enough that it remains a force. It’s a flailing company, kept afloat by bullshit.
The bigger issue is the death of small cap. Massive venture, sovereign wealth and PE funds don’t need the public market capital anymore, so they harvest the vslue and spit out the company late in the value cycle.
Snap, cool as it is, is a social media loser. The investors cashed out their shares to the public, who took the loss.