>>96720589Truth be told, at the height Cover stock had a P/E of around 50, way higher than even most of the tech stocks and almost reaching NVidia level, all of that without any change in fundamentals in relation to two months prior.
It was a stock traded on “feels” and smart money sold high.
Based on fundamentals and in the fact there is no dividends or operational control to derived from holding the stock there is no reason for the stock to be a cent above 2000 yen.
Cover sold their 1.4% (to build the studio) for 750 yen, that’s how much they themselves valued it back when they sold.
Even accounting for their revenue growth and the new areas they entered (namely, stronger partnerships, card games and better merch logistics) the fundamentals don’t point to a 3x valuation.
About Anycolor stocks, the situation is different: Riku is using dividends to pay himself (the holder of a third of the stocks) a massive payout with no respect for the actual operation of the company so it has more or less a 2434 yen floor (heh) which the company will pay good money to avoid falling below including buying back stocks when they fall significantly lowers than that.
All in all: both stocks are overvalued and might stabilize someday (if “feels based” trade ever stops) below 2500
