That is simply not true, stock prices are all about the profits. Just not only the current profits but also expected future profits.
But regarding the stock price of SK Hynix, I recently heard an analyst claim that to make a full return on current stock prices for some RAM companies, they’d have to continue with current record profits for a 1000 years!!
People just don’t always know what they are doing, and some buy wildly overpriced stock, because their delusions make them think the stock can magically only go up.
Tesla has been wildly overpriced by a factor of 10 for years. Because enough people believed the FSD/robotaxi/AI bullshit Musk continues to promise.
So even when the stock market overwhelmingly believe huge profits will come, it may never happen. And when the market realize that there will never be profits to justify the stock prize, the stock will plummet.
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That is simply not true, stock prices are all about the profits. Just not only the current profits but also expected future profits.
But regarding the stock price of SK Hynix, I recently heard an analyst claim that to make a full return on current stock prices for some RAM companies, they’d have to continue with current record profits for a 1000 years!!
People just don’t always know what they are doing, and some buy wildly overpriced stock, because their delusions make them think the stock can magically only go up.
Tesla has been wildly overpriced by a factor of 10 for years. Because enough people believed the FSD/robotaxi/AI bullshit Musk continues to promise.
So even when the stock market overwhelmingly believe huge profits will come, it may never happen. And when the market realize that there will never be profits to justify the stock prize, the stock will plummet.