Noticed in brokerage account the Beta on VERB is .
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Posted On: 02/11/2021 1:43:50 PM
Noticed in brokerage account the Beta on VERB is .5
I think it used to be a lot higher
"A stock that swings more than the market over time has a beta above 1.0. If a stock moves less than the market, the stock's beta is less than 1.0. High-beta stocks are supposed to be riskier but provide higher return potential; low-beta stocks pose less risk but also lower returns."
Assuming it is .5 and the above is true, VERB is not as risky stock as others and is less likely to have wild swings.
That wouldn't be attractive to traders, but would to institutions (i.e. less riskier stock).
Maybe one of the reasons they've been buying a lot since December?
I am down with a stock that isn't as risky that I think has crazy high potential
But everyone should do their own DD and determine their own risk level vs just looking at Betas
Let's walk down memory lane for example for a minute
Redbox:
You want do to what? Put vending machines outside for people to rent movies?
They will steal the vending machine. It will be too hot or cold for them to rent. The DVD will get stuck. Someone will stick their hand up the machine and take them all. Why wouldn't they just go to the video store? They are going to scratch them up. Renting for a $1 you'll never get a ROI back.
Netflix:
Who is going to pay $10/mo to watch older movies when you can get 10 recent movies from Redbox right down the street. People won't have the bandwidth. They are all on AOL andmodems...
Uber
Who is going to get in a car with a stranger for a ride. How do I know they are vetted and trustworthy. How do I know they can even drive. What if you get into an accident?
Amazon
Why would someone buy something online when you can go to the store and see it in person? How would I know what size? How would you return something? What if my package doesn't come? What if someone steals my delivery
Electric Vehicles
Who is going to buy a EV car? Why would they as gas is so cheap? How would they get if fixed? How would they charge it? What if it runs out of juice? How would I go on vacation? Wouldn't the batteries under me fry my ass?
Verb
Why would someone take 5 second to make a video interactive? No one sells anything directly. Why wouldn't you just use TikTok to sell? That online ecommerce social selling will never catch on outside of China. Sales people like to get on planes everyday. Pandemic will be over with tomorrow.
All these companies had to learn how to crawl first while everyone told them it was impossible.
I think it used to be a lot higher
"A stock that swings more than the market over time has a beta above 1.0. If a stock moves less than the market, the stock's beta is less than 1.0. High-beta stocks are supposed to be riskier but provide higher return potential; low-beta stocks pose less risk but also lower returns."
Assuming it is .5 and the above is true, VERB is not as risky stock as others and is less likely to have wild swings.
That wouldn't be attractive to traders, but would to institutions (i.e. less riskier stock).
Maybe one of the reasons they've been buying a lot since December?
I am down with a stock that isn't as risky that I think has crazy high potential
But everyone should do their own DD and determine their own risk level vs just looking at Betas
Let's walk down memory lane for example for a minute
Redbox:
You want do to what? Put vending machines outside for people to rent movies?
They will steal the vending machine. It will be too hot or cold for them to rent. The DVD will get stuck. Someone will stick their hand up the machine and take them all. Why wouldn't they just go to the video store? They are going to scratch them up. Renting for a $1 you'll never get a ROI back.
Netflix:
Who is going to pay $10/mo to watch older movies when you can get 10 recent movies from Redbox right down the street. People won't have the bandwidth. They are all on AOL andmodems...
Uber
Who is going to get in a car with a stranger for a ride. How do I know they are vetted and trustworthy. How do I know they can even drive. What if you get into an accident?
Amazon
Why would someone buy something online when you can go to the store and see it in person? How would I know what size? How would you return something? What if my package doesn't come? What if someone steals my delivery
Electric Vehicles
Who is going to buy a EV car? Why would they as gas is so cheap? How would they get if fixed? How would they charge it? What if it runs out of juice? How would I go on vacation? Wouldn't the batteries under me fry my ass?
Verb
Why would someone take 5 second to make a video interactive? No one sells anything directly. Why wouldn't you just use TikTok to sell? That online ecommerce social selling will never catch on outside of China. Sales people like to get on planes everyday. Pandemic will be over with tomorrow.
All these companies had to learn how to crawl first while everyone told them it was impossible.
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