It turns out a company with $4 million in revenue and $58 million in losses might not be worth $8 billion, after all.
    • neptune@dmv.social
      English
      53·
      3 months ago

      “on paper”. You only add this in when everyone knows it’s not actually true, but someone wrote it was.

      • theodewere@kbin.social
        582·
        3 months ago

        its market cap is entirely fraudulent… not only did the company lose money last year, it only brought in $4 million in revenues… this wild IPO valuation is indicative of fraud of some kind… probably plain old money laundering…

        • Cethin@lemmy.zipEnglish
          31·
          3 months ago

          Yep. Not that Reddit is worth as much as it opened for, but it’s worth more than Truth Social for sure, but somehow they opened to a higher value at about the same time. There’s no reasonable way that happened legitimately.

        • jeffw@lemmy.worldOPM
          75·
          3 months ago

          A market cap can’t really be “fraudulent”. Stock valuation has traditional methods, but meme stocks have blown the lid off of that in many circumstances. It’s still worth that much because people are willing to pay that price.

        • NewNewAccount@lemmy.world
          213·
          3 months ago

          this wild IPO valuation is indicative of fraud of some kind…

          My impression is that you have no clue what you’re talking about. Be real, are you talking out of your ass here?

            • Ilovethebomb
              38·
              3 months ago

              It’s worth what people are willing to pay for it. We know how much a share is trading for, and we know how many shares are in circulation, therefore the company is worth X.

              Most people don’t think it’s worth that, but most people aren’t buying stock.

      • whotookkarl@lemmy.world
        3·
        3 months ago

        Either that or it’s written on some very expensive paper. Not sure what material would be worth that much at A4 and 8.5x11 sizes.

  • gregorumEnglish
    54·
    3 months ago

    This article is out of date. It fell by a lot more than that by close of the market.

      • ripcord@lemmy.world
        11·
        3 months ago

        It’s still worth billions, and more than it was initially offered at.

        Until it drops to $2 and/or is delisted, it’s not a happy or even amusing ending.

  • june@lemmy.worldEnglish
    29·
    3 months ago

    I almost bought puts.

    Realized I lack the knowledge.

    So I chose not to.

    • mosiacmango
      35·
      3 months ago

      If you bought puts at the wrong time, you would have lost money, and then you would be doubly upset when it actually cratered.

      1 sad is better than 2 sad + poor.

        • ikidd@lemmy.worldEnglish
          121·
          3 months ago

          I’ll sell you the opportunity to take my share right now and sell it, if you promise to buy me another share in 3 months at the going rate then. If I guess right, that share will cost as much as it does right now, so when I get my share back, it’s still worth what it was before and I keep the fee you paid to borrow my share. If you guessed right, you can replace that share at a much lower cost in 3 months.

          The cost I’m going to ask to lend you my share will go up as the likelihood of the price going down later on increases. If it’s really, really likely that the cost will go down, I’m going to charge your ass off to borrow my share to offset the potential loss I’m going to take.

  • tacosanonymous
    13·
    3 months ago

    They made up that worth a couple of days ago. To be honest, it needs to drop another $5B.

  • penquin
    12·
    3 months ago

    I didn’t know he was worth shit after all the shit we have been seeing.

  • Got_Bent@lemmy.world
    11·
    3 months ago

    I wonder if he’ll try to grab his stocks in the groin when they’re trading on the pink sheets.