No, they're stock arguments. They're "fundamentals". Did I look at their balance sheet, no. But asking questions about their competition and likelihood of being around and healthy in a few years isn't meme.
Even "Hey this has short 140% of float" isn't a meme stock thing.
The definition of "meme" stock is it being a meme - is it getting hyped up on social media and reddit with inside jokes and collective action (as much as they pretend it isn't collective action).
What I didn’t say that. I said those are meme stock arguments, which they are. Surface level factors that may or may not matter but don’t give the whole picture of cash flow which is ultimately what matters.
If you didn’t look at the balance sheet I don’t see how you can claim to care about fundamentals. The company’s ability to be in business in a few years depends on how much cash they have and how much they can generate. If the market tanks financing dries up, and if they aren’t cash flow positive then it’s game over.
Whether people like the product or not and how they compare to competition only matters if they have cash figured out. Anybody can sell a dollar bill for $0.80 and have a fantastic product, doing it profitably is the trick. WeWork is probably the best example, entering high risk long term leasing commitments and subleasing that space at a loss. They were bid up to an insane $40 billion valuation based on just this, until they tanked pre IPO. Now with the low probability, high impact risk of a global pandemic coming about, they’re struggling to survive and I’m surprised aren’t bankrupt yet. Still have a better product than the competition though.
> The company’s ability to be in business in a few years depends on how much cash they have and how much they can generate. If the market tanks financing dries up, and if they aren’t cash flow positive then it’s game over.
Sure, and these considerations are all things that are downstream of product, competitive positioning and IP.
Even "Hey this has short 140% of float" isn't a meme stock thing.
The definition of "meme" stock is it being a meme - is it getting hyped up on social media and reddit with inside jokes and collective action (as much as they pretend it isn't collective action).