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by xracy 15 days ago
I feel like market cap valuations should have some way to factor in the supply/demand constraints. I know that float exists as a concept, but I think it's insane to call SpaceX a Trillion dollar company, when if it started selling significant stock tomorrow, it would probably be selling pennies on the dollar.
4 comments

You can be that factor! Short sell the stock, and use the money to invest in a more-accurately valued business.
Most company's stock would fall pretty hard if all the holders decided to sell at the same time.

So although Google, say, technically has a huge float on a percentage basis, because none of the big three holders (Eric Schmidt, Larry Page, and Sergey Brin) are selling any significant amount of their shares, the practical float is much lower.

Tons of people and bots are saying insane things all the time. It is your choice to pay attention to insane things, or to ignore them and pay attention to the (presumably reputable) numbers.
The liquidity problem affects all the stocks, some more than others