—Musk implies Google (Alphabet) is way overvalued (see bottom)
Opinion by Mathew Carr, not advice
Match 29-30, 3025 — See this wishful thinking Friday:
Stocks Suffer Second Worst Day of Year as Tariffs Sap Sentiment
https://www.bloomberg.com/news/articles/2025-03-28/market-rout-starts-with-big-tech-as-tariff-inflation-fears-hit
Bloomberg and the financial press are forgetting history.
Tech stocks are overvalued…that’s why they are falling sharply.
They’ve already wiped out half their gains in the past year.
But I reckon that underplays it.
Chipmakers are tomorrow’s commodities houses …much lower margins are on the way.
Think EV margins and Tesla shares.
Social media companies are easy to switch away from. Think about the decline in average Facebook activity.
Elon Musk the X boss has cleverly gotten his initial big deal done.
And after stealing all the X user data for himself to sell it back to us as AI, he and advisor Morgan Stanley are about to IPO the new group his xAI created yesterday. Watch.
Regulators should require him to hand some of this new wealth to social media users. They won’t, because Musk has captured Mr Trump (and US democracy, it seems).
I’m not saying the tech rout will necessarily accelerate next week, but that is one likely scenario.
To be sure, tech companies will probably benefit as crypto investors rush increasingly for the exit as they realise their emperor has no clothes.
If history is any guide the companies currently making up the Nasdaq index have a long way to slide.
It’s only dropped 2500 to ~17500 so far.
It could lose another 7500. (I’m talking about the companies currently making up that index, not new entrants)
Don’t take my word for it.
The past year’s 50% retracement is not the only one.
I still remember the one from 2000-2002.
Musk had better be quick with his unannounced IPO…though a big valuation is guaranteed nonetheless (because he’s stolen the intellectual property of the masses.)
He’s not the only one.
If only regulators would properly protect the people…from the theft …but I guess politicians will be in thrall of oligarchs for a while yet. Sigh.
This is all the more depressing because it was predicted.
As they did with Julian Assange’s predictions, the elite steal warnings …and instead of acting on them properly in the interests of the people…they selfishly mould them into self-serving money boxes
https://carrzee.org/2022/04/26/musks-twitter-purchase-will-probably-give-him-too-much-market-power/
The EU is backing off when it should be going harder. Financial Times below ignores the data and intellectual-property thefts by big tech
A 10% of revenue fine is just what’s needed to force big tech to truly focus on customers instead of profit.
(Adds comment on FT, early tweets, Musk)
Note
Musk himself implies Google is way overvalued!
