The Applied/CoreWeave warrant structure is textbok value extraction disguised as partnership. APLD doing $145M last year announcing $7B over 15 years? That's the definition of pulling future revenues forward. Your point about insider selling via drip rather than secondary filing is classic - avoid headline risk while monetizing at peak valuations. The 1987 Gap parallel is chilling.
What I see is revaluation happening one stock at a time. Earnings (or cashflow?) reality will eventually be the blood in the water that allows the market sharks to attack every weak swimmer. That said, I don't try to bet on when Ms. Gap or any other swimmer is going to lose a limb.
The Applied/CoreWeave warrant structure is textbok value extraction disguised as partnership. APLD doing $145M last year announcing $7B over 15 years? That's the definition of pulling future revenues forward. Your point about insider selling via drip rather than secondary filing is classic - avoid headline risk while monetizing at peak valuations. The 1987 Gap parallel is chilling.
What I see is revaluation happening one stock at a time. Earnings (or cashflow?) reality will eventually be the blood in the water that allows the market sharks to attack every weak swimmer. That said, I don't try to bet on when Ms. Gap or any other swimmer is going to lose a limb.
IIt’s nice to see not everyone has drank the Kool-Aid. I believe credit problems have been hidden for too long and this is the first of many to come.