Successful investors are usually intelligent people. Vigorous people too. They do not merely rely on gut feeling. They compare prices, analysis predictions and keep current events in mind. And then you have the rest.
If we can just fine be lumped together: a large part of that ‘rest’ undoubtedly includes the people in Snap Interactive are ‘blown’.
What happened? Snap, the parent company of Snapchat, goes to the Wallstreet. That’s not really big news because Snapchat is a booming platform where the end of the growth is not yet in sight. So investors blindly put their pennies on Snap Interactive. One small problem: the two companies there fore have nothing in common.
Snap (chat) is not quite on the stock exchange
Snap Interactive is a software company that is known for the development of dating platforms. Many investors saw Snap Interactive for Snap, parent company of Snapchat.
Are they fools? Partly, but also fools with happiness, because the price of Snap Interactive gone up 140% higher. Some of the investors realized the mistake and quickly sold their stocks again. The currency of Snap Interactive is still thick in the plus.
So yeah, the masses are stupid, or were there among savvy investors who just knew that many investors would be making a mistake which they could ride out the brief wave of success?