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- Sucking up The Market Cap
Sucking up The Market Cap
Crash might happen soon
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Slow Decline
right now stocks are generally beginning to show signs of downward trends. It’s mostly due to TSLA taking majority of the market cap. It has hit a all-time high, and Elon is making decisions to implement new technology.
10 years ago we wouldn’t expect electric cars to dominate the auto industry, now it’s taken a new turn, and Teslas are everywhere.
China with their surprise is following the genius behind electric cars, and made their own. So you can see why people have so much faith with Tesla.
Another thing about Tesla, they are planning to build robots as servants for individual households. You may think it’s crazy, but it may be possible in 20-30 years.
No one believe in self-driving cars 5 years ago, but as of right now, self driving cars are statistically, and significantly safer than human drivers.
I can fully trust my life with a Waymo, knowing that it crashes 9.1 times every million miles driven. That also accounts for errors from other drivers.
Again you can imagine why people are putting their life savings in Tesla. However this is the part where I have to back out.
Caveat
A good company does not give it a good reason to to have high stock price. Many great companies still suffer the same fate of crashing stock price.
Stock prices are dictated by popularity, financial analysis, and economic conditions. When the rich short the stocks, it with ensue panic, and everything will drop.
Political Stocks Still Stonking
TSLA and DJT are still climbing, this is all foreign to me, I’ve never dealt with stocks that goes up substantially because of politics. Every time a company have some major news, it moves it by 5% for a day, and it reverts back to normality.
Now it keeps going up, with TSLA hitting it’s all time high, and what was a non existent stock like DJT is going up because Trump won presidency.
I say according AI, these 2 stocks are good to flip, but you have to sell quick as it may drop, instantaneously.
Low Cost Stocks Are Looking Good
Ford, and Sony are slowly climbing, maybe because people believe in the bull run, that may turn these stocks to hundred dollar stocks.
Here’s the weird thing, you’ll be surprised to hear that a lot of people don’t know what market cap is.
People look at Costco with it’s $1000 stock price think it’s dominating the market. the price is not that important, what’s important is how much money is vested into the share.
Quick Lesson About Market Cap
Costco is currently priced at 988, Sony is priced at 22. By doing some basic math Costco should be worth 45 times more than Sony right? If you’re only looking at it by shares that is technically correct.
However, if you look at market cap, which is how much money people put into the company.
Costco has 439 Billion dollars vested into the company
Sony has 136 Billion dollars.
If you do the math Costco is worth more than Sony by 3.22 times.
Pretty miniscule compared to Sony.
Just because a stock price is low, doesn’t mean it can grow substantially, it could mean, it has hit it’s peak, and probably won’t get bigger.
Flash Crash Crypto
With the recent crash, crypto fell by about 15% percent for a brief moment. I took a fat L on this, as no one could predict this. It’s only a matter of time, until it crashes, and it' is showing signs.
Bitcoin, as of this inflation rate, can’t really grow beyond 100k. We’re going to have to wait at least another decade for it to hit 200k.
I hate it, I bought in at the dip as I normally do, and it just happened to crash harder than my entry. It is what it is, I sold fast enough to cut my losses.
Meme Stock Not So Hot
Gme is doing average, and AMC took a dip in the sewer. Flying Kitty influences are basically no longer relevant.
You may hear news about him, if he makes a post, but his words only affects it for about 10%. Also, him talking about buying a stock is illegal, so he probably don’t want that heat.
If you have extra money laying around, sure go buy some until it goes back to $5 dollars, but best to leave it, and work on stocks that has decent returns.
Why Did Adobe Crash?
Adobe fell 14% because it couldn’t meet it’s goal for revenue. Honestly it’s no big deal, and no scare. When you’re a multi billionaire dollar company, it’s not possible to always make more money than you did last quarter.
Even in workouts, when doing progressive overload, you will have days where you’re too tired to go 110%.
Adobe miss their mark on revenue goal, no one is going to cry about not making enough money.
This opens a opportunity for swing traders to make more money though.
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