Mark Cuban on the market bubble
por Tufail: Mark Cuban
Mark Cuban's answer to what would actually pop this bubble is a flat "I have no idea," and the rest of his reasoning is what makes that land. His comparison isn't to stocks at all. It's baseball cards, where the card itself carries nothing built in, only perceived value and a guess at what the next person hands over. That's how he sees Bitcoin, Micron, Google and Apple moving, all of them meme stocks in his framing. The earnings part is the tell for him: miss by a penny or only beat by a penny and the stock drops 18%, while the intrinsic value of that company hasn't moved 18% at all. Buyers and sellers are just in and out very quickly. He does draw a line between this and the internet bubble back in 2001, so it's a different animal in his read. Same conclusion though, and the flipping is the reason he calls it a bubble 🃏
Transcrição (en)
I think we're in a bubble, but not the same as the internet bubble back in 2000, 2001. I think what's different now is everything's a meme stock. Bitcoin is a meme stock, right? Pick Micron, you know, pick Google, Apple, they're meme stocks. And the reason I say that is by watching how stocks move with just a little bit of news. So a company might miss earnings by a penny or only beat by a penny, and their stock will be down 18%. The intrinsic value of that company hasn't changed 18%. It's just that buyers and sellers move in and move out very quickly based off of anticipated information, as opposed to the net present value of the future cash flows and all that. We're trading them like baseball cards. You know, there's no intrinsic value to this. It's just perceived value. and what do you think somebody else will pay for it? And I think we're in a bubble for that very reason. What causes it to burst? I have no idea.
