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Etsy's stock price reached its all-time high that same year.
Etsy stock price reached its all-time high that same year.
My view is always that it's not necessarily a high return on equity that makes a stock price go. It's a rising return on equity.
high return on equity that makes a stock price
Sales have missed a number of times, and the stock price has really tumbled.
and the stock price has really tumbled.
especially as its stock price has been dropping since the pandemic boom has waned.
It does absolutely in the companies that are pulling that guidance you see the response in their stock price they've had quite a negative reaction on the stock price when they do that but look we look at earnings numbers and we know that they're backward looking and everyone's concern is that we really had tariffs come into play starting in the second quarter so it's all about what that's going to look like in the second third fourth quarter of this year so guidance really is key that is what's telling people what's going to happen going forward and when you're not giving any guidance because you're concerned about the macroeconomic situation that makes investors very nervous.
And the companies that are pulling that guidance, you see the response in their stock price.
Return-to-office mandates are more likely after firms' stock price crash.
Return to office mandates are more likely after firms' stock price crash.
Tesla's stock price is very low.
Although NVIDIA's stock price is very low, it has not broken the front foot of March.
This is just Tesla's stock price over time.
This is just Tesla's stock price over time.
By Zach's definition, this is a great company, but if everybody already knows it's a great company that is poised to do well, then those expectations should already be baked into the current stock price.
And I said, well, that's a good question, because no one knows for certain, but what you need to recognise is that the stock price that you are looking at contains the collective knowledge and information of millions of market participants.
Even if you look at their stock price, you'll see that back in 2022, it was been trading at around $60 a share.
The moment the inflation reduction act here was passed, you see that their stock price jumped dramatically up to $250 over here.