Lucky people in the right place at the right time who think they're masters of the universe. Heard that before. They're the latest if you've been watching them go by with each market collapse. Lets see how wonderful they are when the Magnificent Seven stocks eventually come screaming back down to earth. And they will. They always do.
AI and other technologies are useful, but not worth these valuations. Even Toyota has started serious EV production, competing directly with Tesla. The tech bro wealth, influence and prestige is all based on the valuations of those various stocks. When a massive chunk of that paper wealth evaporates in a dot.com like collapse, society will take a very different view of them. Only 2 of the big 7 have outperformed overall market indexes this year, as cautious money is taking the profit and getting out.
But here's the rub. Tech bros hold a bazillion shares in their companies and can't easily divest without moving the share price sharply downwards. Much of their compensation over the years has been in company stock. They're massively exposed to a serious market correction and can't easily get out of that exposure. If Musk tries to sell millions of Tesla shares, even over a significant length of time, market watchers will take note and figure Musk knows something, so they'll get out too, causing Tesla share price to plummet. An interesting catch 22. They won't be poor most likely, but they won't be masters of anything anymore.
I wonder if they'll be looked on as infamously as Angelo Mozilo, former Countrywide Mortgage CEO, and other authors of the 2008 financial crash. Mozilo is dead now and the world is a better place without him. Musk will probably follow his lead. Doing something uber stupid after a ketamine overdose no doubt.
= new reply since forum marked as read