Mannkind's success rests on the whims of the corrupt FDA, while Twitter's core is already mature and thriving, although not yet profitable. However, I'm long MNKD because of risk/reward potential - the market is doubting the success of MNKD right now - but have no position in Twitter because major success is already priced in there.
P.S., look at how Elon Musk actively tweets updates on Tesla, helping pump the stock from 40 to 195! If only Al Mann tweeted about how awesome Afrezza is on a daily basis and made MNKD viral.
Another point, business models can change too. No one thought Facebook could be very profitable after IPO, not for a long time anyway. But Facebook made use of the capital they raised and made some business model changes. People investing in Facebook foresaw the earnings power of 1billion users, not the "electronic bits of information floating around on the internet"
Case in point: Instagram was sold to Facebook for 1billion. Tumblr was sold to Yahoo for 1+ billion. Facebook or Yahoo may never see that 1billion$ back directly from those operations. But does it enhance their business, user-base, or connectivity in a way that Facebook or Yahoo thinks is worth $1billion? Apparently Facebook and Yahoo think so.
I think you are underestimating the power of "electronic bits of information floating around on the internet". Information and ability to connect and influence the masses is powerful in itself. The market cap is not always about profit potential. If Apple or Facebook or Amazon, wanted to buy out Twitter because they felt it enhanced or could be integrated into their business, or maybe simply for data mining powers, how much would they be willing to pay? That's what the stock market is speculating.
I told everyone that this is a chance of a lifetime SHORT opportunity. I might go long next year when this is under $100.00. Cheers everyone.
I told you greedy pig longs to sell in the 190's. This is headed to under 100. Have fun holding the bag for the next two years.
Not necessarily true, especially for biotech. Sometimes there are shakeouts prior to a news catalyst - see MNKD pre-P3 results (broke to the downside prior to news release on Aug 14). Also see INO before their partnership announcement. It sold off from 3 back to 1.70 and went back to 3 on partnership.
Shorts care more about technical analysis than they do fundamentals, and take advantage of the old adage "stocks take the escalators up and elevators down"... case in point, MNKD took a few months to gain what it lost in 5 days of PPS tankage. Many shorts take shorter-term positions and know when to cover, and are not married to their positions. I suppose I am "married" to this stock but I think the marriage will ultimately end well.
Hate to say it, but it won't help this stock either. This stock is clearly down for other reasons as it has sold off more than other bio names, but take a look around at the entire space the last few days. for example, ACAD down 16% yesterday and 12% today.