EU expenditure is a known though. Margins won't magically improve and you can't build new fabs in a day that will handle the increased demand. Rhenmetall has PE of like 70 doesn't it? They can't just drastically grow, that's now how it works.
It's all priced in and short term top is in for those stocks.
When a stock is at its all time high with 300 pe ratio and failing product to achieve promises of "billions of robots by 2026".... its always the best time to go all in and buy the stock!!!!
You know it's not a real crash cuz retard stocks PLTR/Tesla still trading at 500x pe.
If it was anything but options manipulation these shitters would be the first to sell lmao.
Probably bounce Thursday or Friday.
Same reason as everything else, risk assessment died in the face of COVID stimulus and hasn't come back since. Cracks have been showing the effects of riding the easy <0.1% 2020-2021 money, though, and it seems like it might be coming to roost soon.
A lot of the floating-rate debt started washing out with the big public stuff in 2023 (WeWork, SVB). The fixed rate stuff is starting to hit maturity now, and it's showing primarily in PE-backed bankruptcies (>50% of $500m+ bankrupt liabilities in 2024, >70% this year). All the little $1bn+ PE names like Claire's, Red Lobster, etc. that have been have been filing tally up, >$90bn last year and >$40bn this year.
A bunch of this PE money jumped into AI/crypto ventures after these bankruptcies, and both of those are showing some major vulnerability that you'll see me ranting about on here sometime.