www.blacklistednews.com
Open in
urlscan Pro
198.245.55.242
Public Scan
URL:
https://www.blacklistednews.com/article/81346/mayhem-beneath-the-surface-of-the-stock.html
Submission: On December 07 via api from US — Scanned from CA
Submission: On December 07 via api from US — Scanned from CA
Form analysis 0 forms found in the DOM
Text Content
Skip to main content
Toggle navigation BLACKLISTED NEWS
* FOLLOW
* DON'T MISS A THING:
Follow Blacklisted News through social media
Subscribe To The Blacklisted Newsletter
* PODCASTS
* SUPPORT
THANK YOU FOR YOUR SUPPORT!
Your donations support and help insure Blacklisted News's continued future
and success!
* CONTACT
THANK YOU FOR TAKING INTEREST IN BLACKLISTED NEWS
* Blacklisted News is an independent platform for critical coverage of world
news and beyond. News tips, article submissions, and feedback from readers
is welcomed and appreciated!
ARTICLE SUBMISSIONS:
Have a story you would like to publish on Blacklisted News? We don't shy
away from controversy, and will publish anything that interests us and
matches our focus for the site.
"Click here" to vist our submissions page to get started.
ADVERTISING WITH BLACKLISTED NEWS
Whether you're a media buyer or an individual, we have simple
cost-effective web banner advertising rates and packages. We deliver true
targeted visitors to your web site at the lowest possible price. Your
advertisment will get great exposure to the hundreds of thousands of
monthly visitors to BlackListedNews.com Feel free to contact us for more
details and Please put "advertising" in the subject line of email.
* Email Us
For general inquiries and advertising, email:
Admin (at) BlacklistedNews.com.
Article submissions, tips, and feedback, email:
Tips (at) BlacklistedNews.com.
Voicemail/TXT:
Feel free to send us a message anytime
(512) 222-3067
D.M.C.A.:
If you believe that content residing on or accessible through our website
infringes a copyright for which you own or are a designated agent, please
send a notice of infringement by contacting us at admin@blacklistednews.com
with information specified in our DMCA/Fair Use Policy linked below.
DMCA/Fair Use Policy
*
*
*
*
*
*
*
* BLOG ROLL
* What Really Happened
Cryptogon
Another Day In The Empire
Citizens for Legit Gov.
Information Liberation
News Deck
VICE
Cryptome
All Gov.
VoltaireNet
MD Creekmore
Truth In Media
The New American
ULtra Culture
Gnostic Media
Vigilant Citizen
Raw Story
Truth Dig
Mint Press
Antiwar
Michael Snyder
Drudge Report
Breitbart
Real News Network
SOTT
Alternet
Information Clearing House
Truth Out
Common Dreams
No Agenda News
Activist Post
Dark Politricks
SGT Report
Dana Gabriel
Jacob Hornberger
Lew Rockwell
Strike The Root
The Survivalist Blog
10th Amendment Center
Red Ice
Wayne Madsen
WhoWhatWhy
From The Trenches
RINF
Aangirfan
Old Thinker News
WhoWhatWhy
Boing Boing
Freedom Outpost
Against The Wall
Disinformation
SHTF Plan
Gold and Metals Prices
Zero Hedge
Wolf Street
Washingtons's Blog
Of Two Minds
Money News
Max Keiser
Naked Capitalism
Sovereign Man
Business Insider
Market Watch
Bloomberg
Wall Street Journal
RTT News
CNN Money
Forbes
Business Week
Market Oracle
Money Morning
My Budget 360
Alt-Market
Shadow Stats
Azizonomics
Economist
Economy Watch
Financial Times
Fortune Magazine
Daily Crux
The Daily Economist
The Daily Reckoning
Energy Business Review
Faux Capitalist
Daily Bail
Hang The Bankers
Against Crony Capitalism
Economic Policy Journal
Gonzalo Lira
Liberty Blitzkrieg
The Burning Platform
The Daily Bell
Oil Price
Phantom Report
Global Research
New Eastern Outlook
Foreign Policy Journal
Global Post
Intel News
1913 Intel
F. William Engdahl
Rick Rozoff
Corbett Report
Public Intelligence
Boiling Frog Post
Full Specturm Dominance
Washington Technology
Defense Industry Daily
Global Security
Geopolitical Monitor
Defense Link
Space War
Jane's
Defense Tech
Strategy Page
Military Info Tech
Strategy Page
Homeland Sec. Newswire
Tech Dirt
Ars Technica
Wired
Blast Magazine
PHYSorg
Science Daily
Popular Science
Tech Eye
Engadget
New Scientist
DVice
Mother Board
EFF
Technovelgy
Next Big Future
Singularity Hub
H+ Magazine
Science Magazine
Seed Magazine
CBR Online
Science News
SlashDot
Scientific American
Spectrum IEEE
Technology Review
io9
ZD Net
The Register
Tech News World
Prevent Disease
Food Freedom
Farm Wars
Medical Express
Natural Society
Waking Times
Natural News
New York Times
New York Post
New York Daily News
Washington Post
Washington Times
L.A. Times
USA Today
The Atlantic
Salon
Slate
ROAR Mag
Time
1. Links...
2. Business / Economics...
3. Milplex / Intel / Defense?...
4. Science / Tech News...
5. Health & Environment...
6. Major US Newspapers...
7. Magazines...
Trending Articles:
Big Food says the ‘transition’ to the new world order food system is already
well underway
16 commentsVerizon May Have Just Enrolled You in a Data-Collection Scheme–Here's
How to Get Out
2 commentsMainstream Economists Are Struggling To Hide The Incoming Economic
Collapse
8 commentsOregon Moves to Make Indoor Mask Mandate Permanent
16 commentsSen. Rand Paul Will Force a Vote to Block $650 Million Arms Sale to
Saudi Arabia
9 commentsBiden Surgeon General: Even Tripled Vaxxed Still Have To Wear Masks
Indoors
11 comments
Trending Articles:
Big Food says the ‘transition’ to the new world order food system is already
well underway
16 commentsVerizon May Have Just Enrolled You in a Data-Collection Scheme–Here's
How to Get Out
2 commentsMainstream Economists Are Struggling To Hide The Incoming Economic
Collapse
8 commentsOregon Moves to Make Indoor Mask Mandate Permanent
16 commentsSen. Rand Paul Will Force a Vote to Block $650 Million Arms Sale to
Saudi Arabia
9 commentsBiden Surgeon General: Even Tripled Vaxxed Still Have To Wear Masks
Indoors
11 comments
MAYHEM BENEATH THE SURFACE OF THE STOCK MARKET
Published: December 6, 2021
Share | Print This
Share to Gab
Share Twitter Facebook Email Pinterest Reddit
✓
Thanks for sharing!
AddToAny
More…
SOURCE: WOLF STREET
BUT ON THE SURFACE, STOCKS STILL LOOK HUNKY-DORY.
It’s amazing how individual stocks, at the tippy-top of the biggest stock market
bubble in modern times, are getting taken out the back one by one to be crushed,
but without denting the overall indices all that much.
The stock market bubble was driven by $4.5 trillion in QE in the US alone, along
with many more trillions by other central banks, and it was driven by interest
rate repression, even has inflation has been surging to multi-decade highs, not
just in the US but globally, and not just in goods, but now also in services,
particularly housing, such as rents.
After a decade of QE being relatively benign on the inflation front, giving
central bankers a false sense of confidence, it has finally broken the dam, and
inflation is now surging everywhere, and it’s spreading across the economy.
Central banks are now no longer denying it, and some have raised rates, and
others have ended QE.
Even the Fed, which engineered this money-printing orgy and is very slow in
ending it, is now ending it, and it will be raising rates, and everything is
moving faster than expected, and suddenly the orgy is over.
Each stock that crashes has its own story for the crash. What they have in
common is that they were all ridiculously overvalued, and investors knew it, and
they kept hanging on till the last moment to ride them up all the way, but they
were sitting all bunched up near the exits, and when the signal came, they all
rushed out together, causing those shares to collapse. But even at those much
lower valuations, those stocks are still ridiculously overvalued.
DocuSign, a company that still had a market cap of $46 billion on Thursday at
the close of regular trading, valuing the company at 20 times its 12-months
trailing revenues, despite having lost money every year of its existence,
plunged 42% on Friday during regular trading, after it had announced that its
revenue and billings growth would slow as “the environment shifted more quickly
than we anticipated.” Shares are down 57% since September 3rd. Yet, shares are
still ridiculous overvalued, trading at 14 times revenues.
HOUSING-SALES-RELATED STOCKS GOT CRUSHED.
Zillow had some good news, well sorta, on Friday by promising a big share
buyback as it is unwinding its house-flipping business and selling the thousands
of houses it got stuck with largely to institutional buyers. Upon the
announcement, Zillow’s shares [ZG] jumped 10% on Friday, which whittled down
their collapse since February to 71%.
Opendoor [OPEN], another algo-powered house-flipper, has collapsed by 61% since
the peak in February this year, only months after its IPO via merger with a SPAC
in December 2020.
Compass, which bills itself as a tech company but is a real estate brokerage,
went public in April 2021. Over the eight months since then, its shares [COMP]
have collapsed by 53%. Hapless dip buyers got steamrollered. It lost money every
year under GAAP. If a brokerage cannot make money in the hottest real estate
market ever, when can it make money? It still has a market cap of nearly $4
billion.
Redfin [RDFN], another real estate brokerage that cannot figure out how to make
money in the hottest housing market ever, experienced a crazy 730% spike in
share prices from March 2020 to February 2021. Much of that spike has now been
unwound, with shares down 60% from the peak. Easy come, easy go.
IPO STOCKS ARE GETTING CRUSHED.
The Renaissance IPO ETF [IPO], which tracks the largest and most liquid
newly-listed stocks of US companies and whose biggest holdings are Moderna,
Snowflake, Uber, Cloudflare, and Zoom Video, has plunged 24% since the peak in
February. But some of its biggest holdings have gotten totally crushed.
Moderna [MRNA] has plunged 38% since the peak in August 2021, including a 31%
two-day collapse in early November.
Snowflake [SNOW] is trading at an absurd valuation of 125 times revenues,
despite huge massive and increasing net losses every year. It’s down only 16%
since mid-November, after having bounced back partially from the 14% plunge on
December 1. This is a prime candidate for a massive one-day plunge, followed by
dip-buying, followed by dip buyers getting taken out the back and crushed.
Uber [Uber] has plunged 48% since April, which reduced its market capitalization
to $70 billion. This is a still ridiculously overvalued global taxi enterprise
that is now 13 years old and has lost $36 billion since 2016 under GAAP.
Cloudflare [NET] plunged 28% from the peak three weeks ago. With a market cap of
$51 billion, the stock trades at a ridiculous 88 times revenues though the
company has lost money every year. So now, shareholders get to look forward to
that whiff of disappointment that crushed DocuSign on Friday.
When shares of companies that have been around for years and that have never
made money are trading at ridiculous valuations of 88 times revenues, well
anything can crush them.
Zoom Video [ZM] has plunged 67% from the peak of $568 on October 19, 2020 to
$183.92 on Friday. The descent included a 16% plunge on August 31, followed by a
little dip-buying, followed by massive drops. Despite this massive haircut, the
stock still trades at a ridiculous 15 times revenues.
The ARK Innovation ETF [ARKK], that chases the latest and greatest high-flyers
from online shopping to crypto exchanges, has plunged 41% since the peak in
February.
THE ENTIRE COMPLEX OF US-LISTED CHINESE COMPANIES HAS CRATERED.
The structure of how these Chinese companies issue shares in the US has come
under attack by regulators in China because it attempts to dodge Chinese laws
against foreign ownership. These companies have created separate off-shore
mailbox companies in the Cayman Islands or other tax havens, with a contract
with the Chinese company. And those mailbox companies issue American Depositary
Receipts (ADR) in the US, and holders of these ADRs own the mailbox company, not
the company in China.
From Alibaba on down, they have all done this to get around Chinese regulations.
And investors have been bamboozled into buying ADRs of mailbox companies.
During the Trump administration and now during the Biden administration, these
listings have come under attack from US regulators as well, including because
companies fail to conform to US disclosure rules.
These companies are now pressured from both sides to delist the ADRs. And prices
have collapsed.
Alibaba issued shares in Hong Kong in 2019 via an IPO, and when it gets delisted
in the US, it can continue to trade in Hong Kong. It’s Hong Kong shares dropped
to a record low of HK$ 119.40 on Friday. In the US, the ADR plunged 8% on Friday
to $111.96, the lowest since April 2017, and is down 65% from the peak in
October 28, 2020.
All of them got further crushed on Friday: Pinduoduo (-8.2%), Baidu (-7.8%),
JD.com (-7.7%), Nio (-11%), and then there’s Didi (-22%).
Didi, the Chinese version of Uber, listed its ADR in the US via an IPO in June
this year at the IPO price of $14 a share. After briefly reaching $18 a share,
the ADR has since collapsed to $6.07, down 66% from the post IPO peak. Didi is
now trying to figure out how to delist the ADR in the US.
Investors who’ve been trying to out-hold these collapses, or who’ve tried to
“buy the dip,” have gotten screwed over and over again.
The price of the Invesco Golden Dragon China ETF [PGJ], which tracks these
Chinese ADRs listed in the US – it’s largest five holdings are Baidu, Nio,
JD.com, Alibaba, and Pinduoduo – plunged 9.3% on Friday and has collapsed by 75%
since the peak in February 2021.
PGJ shows what kind of bubble-nonsense these ADRs were and still are, how
they’ve been hyped by Wall Street, and how people who believed that stuff got
fleeced, despite some of the head-fake bounces and dip-buying on the way down:
THESE WERE A FEW EXAMPLES.
The amount of crushing going on beneath the surface has been phenomenal. After
the one-day or two-day plunges, there was dip buying, but these dip buyers had
to unload quickly, or else they got crushed, and so, if they could, they
unloaded to the slower dip buyers, and they got crushed.
Tesla, which dropped 6.4% on Friday, is down nearly 19% from its 52-week high in
early November, as Elon Musk has unloaded over $10 billion of his shares over
the past few weeks.
The Russell 2000, which tracks small stocks, has dropped 12% from its peak.
Most of this mayhem playing out among these individual stocks and some of the
ETFs is band-aided over by some of the biggest stocks that have held up better.
For example, Microsoft is down only 6% since mid-November. Apple barely dipped
after hitting a new high on December 1. Google is down only 4.9% from its
52-week high in mid-November. And the Nasdaq has only dropped 6%, including the
1.9% drop on Friday. And so on the surface, it still looks hunky-dory.
Enjoy reading WOLF STREET and want to support it? Using ad blockers – I totally
get why – but want to support the site? You can donate. I appreciate it
immensely. Click on the beer and iced-tea mug to find out how:
Would you like to be notified via email when WOLF STREET publishes a new
article? Sign up here.
SHARE THIS ARTICLE...
Share Twitter Facebook Email Pinterest Reddit
FROM AROUND THE WEB
Sponsored by Revcontent
HERE ARE THE COOLEST GIFTS OF DECEMBER
HERE ARE 23 OF THE COOLEST GIFTS FOR 2021
REMOVING MOLES & SKIN TAGS HAS NEVER BEEN THIS EASY
FAKE REALITY SHOWS THAT PEOPLE BELIEVED WERE REAL
30 PHOTOS CAPTURING THE WORST MOVIE MISTAKES IN THE HISTORY OF FILM
THESE TWINS WERE NAMED "MOST BEAUTIFUL IN THE WORLD," WAIT TILL YOU SEE THEM NOW
The content you see here is paid for by the advertiser or content provider whose
link you click on, and is recommended to you by Revcontent. As the leading
platform for native advertising and content recommendation, Revcontent uses
interest based targeting to select content that we think will be of particular
interest to you. We encourage you to view your opt out options in Revcontent's
Privacy Policy
WANT YOUR CONTENT TO APPEAR ON SITES LIKE THIS?
Increase Your Engagement Now!
WANT TO REPORT THIS PUBLISHER'S CONTENT AS MISINFORMATION?
Submit a Report
Got it, thanks!
PLEASE DISABLE AD BLOCKER TO VIEW DISQUS COMMENTS
Ad Blocking software disables some of the functionality of our website,
including our comments section for some browsers.
Please enable JavaScript to view the comments powered by Disqus.
SUPPORT BLACKLISTED NEWS
AND KILL THE ADS!!!
BECOME OUR PATREON AND GET ACCESS TO THE AD FREE VERSION OF THE WEBSITE AND
OTHER INSIDER EXCLUSIVES FOR $1.00
--------------------------------------------------------------------------------
MORE BLACKLISTED NEWS...
BLACKLISTED RADIO
BLACKLISTED NATION
ON PATREON
ON GAB
ON TWITTER
ON REDDIT
ON FACEBOOK
BLACKLISTED RADIO:
REPUBLIC BROADCASTING
PODCASTS ON YOUTUBE
PODCASTS ON DEMAND
ON IHEART RADIO
ON SPREAKER
ON STITCHER
ON ITUNES
ON TUNEIN
OUR IP ADDRESS:
198.245.55.242
SPONSORS:
GARDEN OFFICE
GOOD
LONGBOARD
BRANDS
ADVERTISE HERE...
--------------------------------------------------------------------------------
YOU MAY LIKE
HERE ARE THE COOLEST GIFTS OF DECEMBER
TheWalletGuru
THIS VIDEO WILL SOON BE BANNED. WATCH BEFORE IT'S DELETED
Secrets Revealed
50 VINTAGE PHOTOS YOU'S BE HARD PRESSED TO FIND UNTIL NOW
FitnessVigor
MAMA BEAR PLEADS TO MAN TO SAVE HER CUBS FROM DROWING
StoryDropper
DUBAI PHOTOS THAT WILL MAKE YOU THINK AGAIN ABOUT VISITING.
StoryDropper
The content you see here is paid for by the advertiser or content provider whose
link you click on, and is recommended to you by Revcontent. As the leading
platform for native advertising and content recommendation, Revcontent uses
interest based targeting to select content that we think will be of particular
interest to you. We encourage you to view your opt out options in Revcontent's
Privacy Policy
WANT YOUR CONTENT TO APPEAR ON SITES LIKE THIS?
Increase Your Engagement Now!
WANT TO REPORT THIS PUBLISHER'S CONTENT AS MISINFORMATION?
Submit a Report
Got it, thanks!
BlackListed News 2006-2019
PRIVACY POLICY
TERMS OF SERVICE