RE: Realistic view...17 Jan 2021 19:43
One big driver in a stock like this, particularly at a critical time like this, that doesn`t always get much credence.....is sentiment!
You can get your calculators out to work out PE ratio`s, or sales orders and costs to work out profits, but one of the biggest drivers in the stock market is how a company`s product(s) will be received by the general public...whether they think its a brilliant idea!
If it`s generally regarded as `a winner` then the market participants will clamber for the shares, thus sometimes making their share price somewhat ludicrous to the fundamental investors.
At its current rate of car production and earnings, Tesla`s price-to-earnings ratio means that it would take 1600 years to earn (justify) its $750Bn price tag!!!
Never underestimate the power of sentiment.