Don’t Cry For The Robinhooders, Part 2

To summarize: At last Wednesday’s frenzied peak, homegamers were paying 160X free cash flow for GME, which free cash flow—the very stuff of a company’s value—had declined by 83% since its 2016 peak.

In the annals of stock market manias, it’s truly difficult to find anything this stupid. Except….except that the underlying irrationality that gave rise to the so-called Reddit Rally is spread throughout the warp and woof of today’s financial markets.