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Nvidia’s market value has surpassed Amazon’s | VGC (www.videogameschronicle.com)

submitted 9 months ago by [email protected] to c/[email protected]

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[–] [email protected] 2 points 9 months ago (1 children)

Thanks for your take. I think it may be the amount of (irrational) Calls SoftBank has opened and the associated Delta hedging.

The stock is completely detached from any sort of fundamental rationale

[–] [email protected] -2 points 8 months ago

Nah, The Stock Market is basically gambling, just - it's result time is measured in days, weeks, months, and years, depending on the investment strategy you are after.

When you get a state where a group of people have a TONNE of money, and want to put it somewhere to avoid it depreciating to inflation, that money gets put into whatever the considered safest bet is. The issue is, when you have only a handful of big safe bets - those end up being the option everyone dives on, leading to overvaluation relative to the actual performance of the company. This is what leads to future price corrections.

Companies doing hedging and so on are just a part of the puzzle.