clearly makes no sense.... im not short because these irrational stocks can become more irrational... however if the market ever takes a dump this will fall hard...
Way overvalued, agreed here but difficult to short so you only have the options market. Puts here are expensive as lots of people believe the stock is due for a strong correction.
You probably have to be brave and buy puts expiring in the near future. Earnings next week, could be a catalyst for that correction! TRIP just fell $12 from a recent high and that's also way overvalued. Look for WDAY to trade down about $10 - 12 next week after earnings.
Never underestimate the irrational exuberance for some of these stocks. That matters in the long-term, but it's all about supply-and-demand in the short-term. No one can argue that WDAY is crazy expensive at P/S of 40+, but it's been like that for long enough to warrant caution for those salivating to short it. In fact, unless you have money to burn, don't short any stock. Just focus on finding cheap stocks and going long instead.
Irrational exuberance can last longer than expected indeed. But if you seek a stock to short, it makes sense to do it on the most overvalued stock listed on Wall Street. That stock is Workday. It does not make a profit and it is worth 40 times its revenues. There is no other stock like that. Sure, it could run to 80, but the odds are that it will fall back to 20 times sales. Which would be half of the price today. And then it will still be overvalued.
What you are saying about WDAY is true but it also is being held tightly and gamed up. It will work until it doesn't.
If you are no where near fully invested your advice about shorting might make some sense. If you are close to fully invested you have to foolish not to do some hedging in your portfolio which usually means doing some shorting.
Let's not understate it. WDAY started this trading day at 41 times trailing sales.
Is this company's make-up and product so superior that an ORCL or SAP would take them out at a premium to this insane valuation? I highly doubt it.
This is Wall Street nonsense at it's finest.