Markets in general sort of always manage to find the nobs breaking point. After big rallies, some may say bubbles, what is known as "dumb money" is attracted, and you might hear that "oh they don't mean dumb in that sense" if you believe this bs you know you are one of them. Where does this experession come from then? They used the word dumb but without meaning...
Before giving the answer, what happened? Apple had sapphire glass on its home button and camera. They lend money to their supplier, GTAT, a few hundred millions. Absolute masterminds had the genius idea that if Apple was going to have their phones whole screen in sapphire then demand skyrockets and share price goes up... infinity? Oh and this "investment" was "a...
Shorting was already super expensive. But now, now that the company had their first quaterly earnings release since IPO, the thing is taking off. Sales rose 215% and are expected to grow tremendously in the future. Now I do not know how it works, but the company is not profitable. Earnings are something like -1$ per share or so. A growth stock. If they sell way...