For those who haven't heard of a group of people labeled the Paypal Mafia, they are a bunch of former employees and founders of the company Paypal. They include Elon Musk, Peter Thiel, Reid Hoffman, Max Levchin and more. Some have gone on to start new tech companies which have done very well on paper. Do these companies justify the sky high valuation given to them by investors or is this a classical case of pumping and eventual dumping ? Thoughts?
So cash and Tesla are the only investable asset class, is what your saying.. I recommend you buy LMAOU then.
Neither. This topic doesn’t really relate to PayPal Mafia but to thousands of stocks. Investors can’t give some stocks low value when they don’t have a choice. Their only choice is not to invest but when they don’t invest then they aren’t investors. While emerging technologies have often been valued high, as well as various bubbles, long before PayPal While there isn’t any gang pumping and dumping something besides short-term incidents with various stocks, which was also going on before PayPal. Right now the mafia may be the government, not only due to pumping the market via QE but also via stimulus, and by not giving anyone any choice - without getting any interest from the bank people are forced into stocks just to not lose what they already saved, due to inflation and other factors. Tesla may be overvalued but who knows. It wasn’t quickly dumped so it still made millionaires out of people who understood the potential of innovation and how the stock market works. Some people will keep those profits while others will blame some pumping, bubbles, the Fed, etc. All of them may be right, life goes on, new bubbles will begin and even more scams outside the stock market.
Some industries will offer pump and dump for sure. Would look better if there was a Cybertruck hologram.
You're either misusing the term "pump and dump" or don't understand the process of building a new company to the point of a public offering.
The trading strategies for - manipulated & non manipulated stocks, - stocks that are being pumped and dumped or none at all are exactly the same. It doesn't mean that when the stock is not manipulated & when there is no pump and dump thing, you will be a millionaire soon. The more you worry, the more you are afraid, the more nervous you are, the more money you lose. Just focus on the chart and trade accordingly and that should suffice.
So Musk and Chamath are not exacerbating the pumping of GME is what your saying and this is all part of the process of building the company. I recommend you buy LMAOU, great fundamentals and future outlook.