this post was submitted on 12 Oct 2023
655 points (98.4% liked)
Technology
59232 readers
3345 users here now
This is a most excellent place for technology news and articles.
Our Rules
- Follow the lemmy.world rules.
- Only tech related content.
- Be excellent to each another!
- Mod approved content bots can post up to 10 articles per day.
- Threads asking for personal tech support may be deleted.
- Politics threads may be removed.
- No memes allowed as posts, OK to post as comments.
- Only approved bots from the list below, to ask if your bot can be added please contact us.
- Check for duplicates before posting, duplicates may be removed
Approved Bots
founded 1 year ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
It's not a matter of understanding the failure is systemic.
Shareholders only buy shares for the expected growth, not so much for the dividends. Dividends are literally pennies on the hundred dollar costs. Single digits percent annually.
At some point prices have to adjust to material reality and someone will lose money. Sometimes expected growth is not possible.
Hence when predatory shorting takes place while long institutions switch to short positions hoping retail joins in on selling shares to allow the stock to crater and delist from the open market thus facilitating cellar boxing to occur, making them even more money then they made on the upside. It's why wall street actually loves bubbles and helps create them....
Well maybe retail but hedge funds love shorting shit to the ground. Having unrealistic growth goals sets a company up to eventually reach a point where they can switch the narrative to decline in a company because of missed unrealistic growth goals, that's where the big boys make a lot of fucking money as once a stock gets delisted they can warehouse and never settle failed to deliver trades, or naked shorts that inflated the number of shares available to exponentially grow there position on the downside. It's a game of siphoning money away from the public.