Is it fundamentally weird that massive companies have such massive spikes of essentially imaginary valuation? Isn’t the only useful thing we get out of turning our economy into a casino accurate pricing driven by market forces? How can this market decide if a massive established figure is worth $300 or $150 decades after its creation?
Is it fundamentally weird that massive companies have such massive spikes of essentially imaginary valuation? Isn’t the only useful thing we get out of turning our economy into a casino accurate pricing driven by market forces? How can this market decide if a massive established figure is worth $300 or $150 decades after its creation?
The answer is surprisingly easy, the valuation comes from the price people are willing to pay for the stock.
People seem to believe the AI hype will increase value, or at least are willing to bet that it will, and thus are willing to pay more for it.