Comment by robocat
7 hours ago
> believers
If it were only retail investors, your assumptions could make sense.
However plenty of the share ownership is institutional investors. Most of them care a bit more about fundamentals. (I'm ignoring passive investors just using indexes).
A lot of institutional investors get caught out all the time when they make mistakes about the fundamentals.
They also care about networking and connections.
Secondary effects can also make this a good investment decision: if you have enough other delusional people to buy into it, you still gain from it, even if you believe it's bullshit.