The stocks has only been around for a few years so not too much history to begin with.
Those analyst estimates are mainly based on industry trends and fundamentals. There is really no way to predict the effects of short squeezes, what HFT will do on any given day, buyout rumors, and other factors that could cause the stock to spike substantially above a price target.
Any investor in this space (I am not one) should take heed of the underlying fundamentals. While the company is not in any cash crunch or excessive debt, current earnings and forecasted earnings are most likely not the reason the stock is this high. The stock actually sold off to about 53 on last earnings release and since ripped the stock close to 50% off last swing low. This is a nearly 50% run for a $7 Billion dollar company in just over 2 weeks. There is no analyst in their right mind that would say this is sustainable.
From my experience in the market, this is a classic short burn. I've seen this time and time again and it never really ends well. You see wider than usual spreads intraday on heavy volume, a low bid and high ask with many market orders hitting the offering price. Size is usually heavy on even-dollar numbers acting as checkpoints to squeeze the stock higher. Short info is always delayed for weeks, but one can estimate that at least 1/4 of the outstanding shares were short.
Not to mention the frothiness here. How many other stocks out there do you have investors rolling out of bed at 4:30 in the AM punching in buys and continuing until 8:00 PM? The stock has attracted retail euphoria.
When there are no shorts left to burn, there will be no fuel left to push it higher. It starts with profit taking from the long term guys, followed by late-stage buyers getting margin calls, exacerbated by new shorts and downgrades. This is a pattern that never fails and it is at a level where this will be an imminent outcome.
I really messed up on this one. I bought in at $33 PPS and sold at $50 because that WAS the price target at the time. Of course it wasn't that long ago, but I got scared and didnt think it would go much higher. Oh well I see I was wrong. Now I'm worried about buying back in, because I know it will go up, but probably not before a dip.
That's exactly my predicament. i bought in at $31 and out at $52. I need to look at the chart to figure a new entry point, but ya, it would be silly not go get back in IMHO. The sky's the limit for this technology, and DDD seems to be grass roots.