[CydeWeys]

The crazy thing is, /r/wallstreetbets is fully cognizant of this fact. They just do it anyway for the lulz. They egg each other into increasingly degenerate highly risky options trading, and huge losses are lionized just as much as huge gains.

[lordgrenville]

Matt Levine calls this the "bored market hypothesis": people are investing purely for fun, in significant enough numbers to actually move the market.

[whimsicalism]

Eh. If retail investors are investing in the same direction "just for fun" then the real institutional investors will just short their bet.

[lordgrenville]

Unless the market can remain bored longer than institutional investors can remain solvent...

[whimsicalism]

> Unless the market can remain bored longer than institutional investors can remain solvent...

Don't let nit-picky facts like that institutional investors control substantially more capital than retail investors get in the way of a good narrative.

[dralley]

Tell that to all of the institutional investors that have lost money shorting Tesla.

No, there is no good reason for Tesla to be valued the way it is - but there is no shortage of people willing to buy it without putting too much thought into the price, either.

[marketgod]

Tons of good reasons. My model says $TSLA should be $1,000 a share and is undervalued. It should be there for March and even earlier. $5,000 in a decade.

[cvhashim]

Gambling is a disease

[blueside]

But it's the only disease where you can win a bunch of money from it

[tacocataco]

Not if you win all the time.