Gen Z’s ’Dividends and Chill’ Strategy Sets This 12% Payer Up for Profit
We all know that stocks can rise on nothing but hype for long periods. But at the end of the day, it all comes back to one thing: profits! If they don’t rise, the stock will tank. It’s just a matter of time.
Consider the case of Peloton Interactive (NASDAQ:).
Pandemic Ends, Peloton Crashes
When the pandemic had everyone exercising indoors, speculators piled into the stock, hoping that soaring earnings would ignite the company’s value.
Peloton’s net income was deep in the red then. Fast-forward to today, and it’s still negative. The stock has, of course, dropped to reflect that.
What I’m getting at here is the idea that a stock can gain on hopes of future earnings, but that only lasts for so long. When investors give up hope,…
