padib said:
All of the economy is based on perceived value, lies and illusion. The stock market is exactly in that trend. Just as the soda you drink is not worth 1USD, that is also a lie and an illusion. But you pay it nonetheless. Untill everyone stops buying soda, there is no reason for the price to collapse. Same idea here. |
Coca cola here in denmark actually got cheaper over time.
Like for some reason, I remember back 10 years ago, prices where the same or higher.
And I swear we even added in a small sugar tax.
Sometimes coca cola is cheaper than water bottles.
Its cheaper than buying juice.
I think you used a bad case there to prove your point.
I wouldnt say coca is overpriced, even if they probably still have high returns on each sale.
(my point isnt that your not allowed to profit off of sales, ei. sell a item for more than the parts costs)
Its that the stock increase, doesnt match earnings or growth of the company.
Why would value go up 600%, if revenue is up like 33%?
The 2 are out of line, and clearly that reflects on the stock likely being over valued.
Its a bubble to me (too many people eating the lie, eventually it wont hold... and the bubble bursts)
MS and Apple are both valued at around 2T in stock.
However Apples annual revenue is like twice that of Microsofts.
I just assume with stocks, there would be some sort of correlation between revenue/profits, and the value of a company.
(reality is there doesnt appear to be such, which just feels "off" to me, like a illusion or trick.)
