saicho on 09 April 2009
| bdbdbd said: @wfz: I don't know about that so much. Stocks in general tend to be overpriced in relation to what the actual gains are when owning a share. Stock price first and foremost is what the market expects from a company. Huge growth always inflates the price. |
Not completely true especially now.
If you do not meet profit analysts expect, the stock price would drop even if you make money. Maybe Nintendo is expected to make $5.5 billion for the year and now they "only" made $5 billion. On the other hand, if you don't lose as much money as the analyst expect, the stock price would go up even if you lose tons of money. Say a company loses "only" $1.8 billion instead of $2 billion that analysts expect.
Just like a lot of things, it's all relative to expectations.
MikeB predicts that the PS3 will sell about 140 million units by the end of 2016 and triple the amount of 360s in the long run.
