If Carvana dropped from an $80B stock price valuation to a $1.5B valuation, it was never “worth” $80B. That was its tulip price.Stock prices and values used to based on mundane ideas like price/earnings ratios. Companies financial position were evaluated by crazy things like revenue, gross profits, inventory and turnovers, debt ratios..  boring stuff.But that boring stuff often helped identify over priced over hyped investments.

If Carvana dropped from an $80B stock price valuation to a $1.5B valuation, it was never “worth” $80B. That was its tulip price.Stock prices and values used to based on mundane ideas like price/earnings ratios. Companies financial position were evaluated by crazy things like revenue, gross profits, inventory and turnovers, debt ratios..  boring stuff.But that boring stuff often helped identify over priced over hyped investments.

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