Boiler Room: The Official Stock Market Discussion

[dora_da_destroyer]

Many were. A lot of people claim "x company could be the new Netflix" but it's so rare that happens. Just because i mentioned earlier.. Lucid. That company seems great on the surface but there's still probably a less than 5% chance it actually succeeds the way we'd wanna see it succeed.

Much more realer scenario would be it fails or bought out. Probably won't exist in ten years. That's just the nature of tryna upscale.

a buyout is often a great deal for early investors, mergers usually come at a premium to the share price, so that's not a fail. i bought LCID on the gamble it does succeed on its own but with the realistic expectation, it could get acquired by a larger manufacturer. there are some stocks, especially right now, that are a deal if acquired in the future. i believe TDOC will recover 2-3 years out, but if it doesn't it's too big and important to die, some health insurance company will buy it out. multiple ways to play stocks

 

[Starski]

It’s weird that a recently IPO’d company is spending money on R&D? I thought that was normal for a tech company in the growth phase?

gotta spend money to make money

I don’t follow tech like that ( I do cover a high growth sector) but u really believe most companies who 3x their SG&A expense y/y only to return a 2-3% increase on their revenue isn’t horrible?


This on top of the fact then have a net closure of accounts last 2/3 quarters.

 

[NaijaProdigy Redux]

Their tech & development & General admin. expenses tripling while their revenue stayed stagnant. Unless there is a huge weird one time expense in there that’s some crazy shyt. Horrible operating leverage

Not unusual for these growth companies to be operating at negative margins.

The bigger issue is that Robinhood is a lackluster company with no competitive moat.

 

[winb83]

Breh.. this not a board for financial advice. Not saying that's what u did but you probably were chasing the highs we all were. But remember nobody ever says sell Apple or sell MSFT even here...

What i did mention just me personally is there's no way in hell im holding something Lucid for example when im up 300% in a month etc... im ALWAYS gonna get profits on those..

Even recently just buy leaps and sell on bounce days.. ive always been very cautious with holding growth except the main cathie fund that i held and is slaughtered but the others i parted ways a long time ago.

There's a few others i held and are down big on one of my M1 accounts too. Not all sunshine over here Lol

It was something I decided to do on my own. I just had bad timing. Should have waited a year.

 

[Silky Johnson]

What yall take on SoFi?

 

[humminbird]

What yall take on SoFi?

A company that is good for a long term hold but you have to buy on a dip day or just buy it and don't look at it for a year

 

[humminbird]

LVMH is just that stock that will hold you tight.

 

[princeofhaiti]

LVMH is just that stock that will hold you tight.

how do you invest in LVMH? Its not listed in US stock exchange

 

[Mindfield333]

Man Robinhood is so janky. I had a 21 NIO put and I swear I told it to sell if it gets to a certain point. But it didn’t and sold at my lowest limit. I should’ve just let it rock

 

[humminbird]

how do you invest in LVMH? Its not listed in US stock exchange

I have stocks in the ticker LVMHF

 

[Mirin4rmfar]

Question, with everything getting clapped what was causing these super high ipos? You have c3ai etc.Snowflake, affirm. All of them were just unaffordable at ipo times at least for me.

 

[Saysumthinfunnymike]

a buyout is often a great deal for early investors, mergers usually come at a premium to the share price, so that's not a fail. i bought LCID on the gamble it does succeed on its own but with the realistic expectation, it could get acquired by a larger manufacturer. there are some stocks, especially right now, that are a deal if acquired in the future. i believe TDOC will recover 2-3 years out, but if it doesn't it's too big and important to die, some health insurance company will buy it out. multiple ways to play stocks

i didn't mean a buyout would be bad just that it won't be a "i bought Netflix at a penny and now it's $500" or whatever scenario a lot of people build up in their mind.

 

[Sugarbush]

Question, with everything getting clapped what was causing these super high ipos? You have c3ai etc.Snowflake, affirm. All of them were just unaffordable at ipo times at least for me.

I’m not an expert but I would say because the market was over valued

 

[Saysumthinfunnymike]

Question, with everything getting clapped what was causing these super high ipos? You have c3ai etc.Snowflake, affirm. All of them were just unaffordable at ipo times at least for me.

A lot of scraping of wells that had already run dry. But don't forget they are playing these names both sides. They've made billions on puts.

 

[dora_da_destroyer]

Question, with everything getting clapped what was causing these super high ipos? You have c3ai etc.Snowflake, affirm. All of them were just unaffordable at ipo times at least for me.

traditional IPO's have been overpriced for a decade now because growth was so hot, people wanted to get in on the ground floor. the IPO process also only benefits people who are in before IPO - ex. a company decides they want to sell 1000 shares, preferred investors - institutions and the super-wealthy - get early access to buy at the IPO price, now there are only 200 shares that are floated for the public, the demand drives the opening price up, then preferred investors dump their shares, there may be a price dip shortly, but then public demand drives the price up again - this works when you have a market like we did from 2016-2021. but now the cost of debt is going up so all these unprofitable companies that were being priced on future growth are falling because growth will be slower as interest rates degrade the amount of future profits or moves the window to profitably further out.