> the best way to reliably predict cash flows tomorrow is to focus on effectively delivering value to customers today.
That's the key!
Aside, but it really bugs me when the "wizened stock people" belittle the Gamestop thing as "for the lolz". They're either naively or willfully trying to ignore that there was an actual plan there, of squeezing the short. The value of the stock went up because the shorter had to buy it, not because of the memers.
From what I understand (not a finance expert!), yes, more stock had to be purchased to cover the short, but that happened because the price of the stock shot up several orders of magnitude above what anyone expected. And the reason price shot up was because a bunch of people on reddit agreed to buy the stock. Put another way, the "plan" didn't really have to do with fundamental analysis of the underlying company, as much is it was about getting a bunch of people to pump the stock.
> the best way to reliably predict cash flows tomorrow is to focus on effectively delivering value to customers today.
That's the key!
Aside, but it really bugs me when the "wizened stock people" belittle the Gamestop thing as "for the lolz". They're either naively or willfully trying to ignore that there was an actual plan there, of squeezing the short. The value of the stock went up because the shorter had to buy it, not because of the memers.
From what I understand (not a finance expert!), yes, more stock had to be purchased to cover the short, but that happened because the price of the stock shot up several orders of magnitude above what anyone expected. And the reason price shot up was because a bunch of people on reddit agreed to buy the stock. Put another way, the "plan" didn't really have to do with fundamental analysis of the underlying company, as much is it was about getting a bunch of people to pump the stock.