Margin debt started dropping a month before the Nasdaq went south, and it’s still dropping.
This is now a common phenomenon with these Imploded Stocks.
You’re just “unsecured creditors” if we file for bankruptcy. But hey, CEO tweets: “We have no risk of bankruptcy.”
In October, Upstart was worth $35 billion, according to the collective idiocy of the hype-and-hoopla stock market. Now down to $3.6 billion.
Those that believed the hype and hoopla and didn’t get out in time got thackamuffled.
On crappy earnings and lowered guidance, many of these highflyer stocks kathoomphed -70% to -85% from highs last year.
It’s funny, almost.
Another stock gets added to my Imploded Stocks column.
Dotcom bust all over again, but bigger after 13 years of money printing.
But the mayhem started beneath the surface in Feb 2021.