"The greatest trick the devil pulled was convincing SoftBank that WeWork was a tech company." "GAAP accounting standards got you down? No problema at WeWTF. We has begun reporting "Community-based EBITDA," profitability before the BITDA, but is also taking out expenses, including real-estate, that comprise the bulk of cost required to deliver the service. A more honest description of the metric would be "EBEE, Earnings Before Everything Else." As someone who follows stocks and goes on TV to pretend I have any idea which direction a given stock is going, I'd like to suggest a few metrics to provide insight into We: EBG, Earnings Before Gluten EBBG, Earnings Before the Big Dawg (tennis balls, pig’s ears, etc.) EBEPW, Earnings Before Equal Pay for Women" ------------------------- "Hype company expert here. WeWork did not fool SoftBank or any one else. Masa son was a autistic poor kid from Japan, who wanted to be great one day. During farming rice in the paddy field he realized why bother with paddy, let's make some dough. I regret not saying farming wheat at the first place. Ok whatever long story short he makes a neat electronic dictionary, he becomes a millionaire. Then he comes with the brilliant idea of putting google translate to all English website translating them Japanese and adding some clipart and anime and saying, "Look at this neat Japanese version of the US website" in Japanese of course. Everyone went round around doing bowing and patting them on the back and shit. Autistic move, you say? Yes. It was an autistic move. By some miracle except yahoo japan, every one of his venture failed in dot com bubble. The dude who got lucky with dictionaries might have to go back to the paddy fields. So, he looked west for the last time. But not too west, west until it was China. There he finds dofus rick, Alibaba man. Alibaba man, was the man who couldn't speak English , couldn’t get a job at McDonald's, had 20 yens in his pocket but that guy applied to Harvard 20 fuckin times. Masa said, " I don’t have the money to invest in a fuckin harvard dropout the best I can do is a harvard reject". And by some autocratic government backing autistic luck Alibaba blows up and I mean like hiroshima blow up. Masa is rich again, but this time he is that autistic rich like that wsbguy and somehow people started to say that was not fluke unlike the wsbguy. He found his Steven Jobs. Now Masa hunts steven jobss, and not good businesses. And guess what, you have heard of the oil Sheikhs and large companies who have tonnes of money with nothing to do with em. They give all those money to masa and tells him to do fuck all with it. Then Masa mets the giraffe Adam Neumann. Giraffes company is barely a new concept, does not have any significant revenue potential, and is hemorrhaging money. But masa was impressed at the first sight of Neumann. He had that "fuck all charm" Masa had been looking for all this time. His magnificent neck, he wearing sandals or is barefeet, his connections to Gweneth Paltrow, he treating his employees like shit, he doing kitesurfing or some edgy rich guy sports all these enticed Masa. Masa had a hard on for that giraffe and Neumann found his sugar-daddy. Masa did not blink twice before showering him with money. Because Neumann stood for everything that Masa hoped a great new age tech company would have. But the showering of money was the problem. This led to overvaluation and ROE couldn't match expectations. WeWork tried to diversify but nobody cared for their shit. People are taking about socialism and UBI in US and Neumann's business plan was $25,000 per year kindergartens. With Masa being his sugar daddy Neumann spent more money than mid 90s billy gates. Then it all came crashing down. Did WeWork cheated? No. Did Masa got angry? No. Did anyone got hurt? Kinda yes. Giraffe was given a billion dollar severance package that the board greenlit. All investment was private fund investment and the public was not directly impacted. But the tech giants could have handed down the excess cash as dividends but they chose to make autistic bets with autistic amount of power on autistic people. Masa is the real cunt here for empowering Neumann, and Tech giants are the parent cunts for empowering Masa in the first place. A company like WeWork wouldn’t have survived, everyone knew that but Masa mainlined cash to them to the point WeWork ODed. Tech giants are the real cunts. They have so much cash, and are so much addicted to not paying taxes and dividend they have a huge excessive liquidity problem and they chose to invest in stupid companies like WeWork, Juicero etc just to say fuck you."
(1) is unrelated to the market boom. It became fastest growing because occasionally some guy gambles $50k and turns it into $1MM, or gambles $1MM and turns it into $50k. It's a slow moving trainwreck people like watching. The ability to get level 3 options ability by lying on a form because there's no trader verification anymore also hasn't helped. (2) is certainly a reason I think. Partial stocks are only needed because values are so hyper-inflated your average investor cannot afford to participate. (3) This was a meme. I seriously doubt their margin is infinite without the "infinite margin glitch" meme that /r/wallstreetbets started. I agree though EVERY options broker is guilty of providing "no questions asked" options trading. Not that this has anything to do with overinflated markets. (4) This is usually my indicator of nearing a top. Think back to every major bubble in the last 4 decades. What happened before them? A shitload of bad IPOs. (5) TSLA is certainly a baby of a nonsensical market. There's not a single dollar of value in this company right now and the market is saying it's worth more than Amazon? Hilarious, absolutely hilarious. (6) I've read both sides and I think that guy deserves what he got. He was injecting false liquidity into the market. You can bleet on about "HFTs do it!" To that I will say - guess he shouldn't have gotten caught, huh? (7) TSLA will be the new Enron. Just watch. (8) No one should respect cryptos. This is certainly a sign of people looking for alpha on skid row.
The Big Picture: 5 Reasons Why The Nasdaq May Hit 10,000 (paywall) https://www.investors.com/market-tr...-bent-5-reasons-why-the-nasdaq-may-hit-10000/
I agree things are nuts - these are all good mile-markers of the current insane zeitgeist. As a trader, just ride the wave and buy the dip. VC and private-equity markets are imploding in slow motion at the moment - and the irony is that this could well lead to even more capital pouring into the can't-lose mega-cap compounders in the public markets. Wouldn't surprise me to see SPX trade at a 50x PE and NDX at 100x, at some point in the next 2-3 years. It will be obvious when the cycle really turns, probably down to the exact day - likely a Fed day where the markets are expecting the next round of money printing, the Fed disappoints in the softest way possible (due to rising CPI or some other reason), and ES closes down 5%.