Why People Buy Stocks With Bad Fundamentals?

T

tradingjournals

1. Let us say there is a stock with negative return on assets, negative margins, and high leverage. Since people seem to own them, there must be a reason why people buy them. So why do they buy such stocks?

2. Could you give examples of bad fundamentals?
 
Quote from tradingjournals:

1. Let us say there is a stock with negative return on assets, negative margins, and high leverage. Since people seem to own them, there must be a reason why people buy them. So why do they buy such stocks?

2. Could you give examples of bad fundamentals?
More...

1. They are momentum/technical traders, or mom & pop investors owning a piece of life changing technology

2. Twitter, Amazon, Tesla
 
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