As someone who knows little about trading cards or "markets" in general I guess, how is this different than any other market? Seems like everything is driven by market sentiment, even things like toilet paper from time to time.
But from this list, and the net profit and net profit margin figures, they seem to be mostly ordered correctly.
Nevertheless:
"The basic issue is that right now everything is dumb. You can complain about that, or you can embrace it. In investing in 2021, “my channel checks and fundamental modeling suggest that this company will grow earnings faster than the market expects so I will buy it with a price target 20% above today’s price” might sound smarter than “this company’s chief executive officer just tweeted a picture of a dog at Elon Musk so I’m going to buy out-of-the-money call options expiring Friday because the stock will go up 200% today,” but the latter approach happens to work better right now.
https://www.bloomberg.com/opinion/articles/2021-11-04/macy-s...
The fact that the market ran up its stock price till the P/E went stratospheric doesn’t make their core business any less viable.
If Tesla stock crashes, it likely won’t be because of anything the company did, but because all bubbles eventually burst, and just about every market, from equities to crypto to trading cards and real estate is heinously overvalued right now and due for correction.
Of course the highly inflated stock price doesn't make their business less viable. It does make it more viable! They've raised large amounts of capital at very favorable terms.
In any case, the point is that the price is quite dettached from those "good fundamentals".
Trading cards (and cryptocurrencies) are not like that. You can only make money if someone else is willing to pay more for it.
Correct me if I'm wrong, as I don't know much about stocks, but doesn't that require the company to have/pay out dividends? Otherwise you do require others to buy the stock when you sell it.
> Trading cards (and cryptocurrencies) are not like that
Don't know enough about trading cards to say that you're incorrect, but you're definitely wrong about cryptocurrencies. You can do various things to earn more without loosing your current amount, from staking (Polkadot), loaning (Compound) to getting rewarded for providing liquidity (Uniswap) or for doing nothing at all (Algorand).
If you make money along the way, as opposed to when you sell, then yes. The prevailing corporate playbook seems to prefer stock buybacks over dividends, which accomplishes roughly the same thing but only triggers tax liabilities for the stockholders who “cash out” by selling.
Obviously there is a limit to this process, but in a frictionless world of perfect financial knowledge a stockholder would always prefer the buyback approach since it defers taxes on the gains as long as possible.
And yes, a company would have to pay dividends, which is what I was hiding in my "in principle" parenthetical.