Future-Hype Arrives Right On Cue... Again

Tyler Durden's picture

Authored by Mark St.Cyr,

Not long back I made mention of a phenom which I’ve come to label as: future-hype.

What this term means is what I describe as the now near comical press releases, CEO jawboning, or anything similar that takes place right before earnings (usually a week or so, give or take) either from “The Valley” or tech space in general.

Usually what you’ll read, see, or hear (and echoed jubilantly by some next-in-rotation fund manager) is some grandiose announcement of some super-duper, sounds really awesome, coming attraction that has the potential to not only change everything, but also, to fill investor coffers with riches beyond the imagination.

All one needs to do, as to engage and embrace in this vision, is to use their own imagination, then buy into the “dream” with real legal tender, literally. Because, without those investor dollars continuing to pour in? The “dream” as they say – will be lost. Along with any earlier proceeds. Rinse, repeat.

I made mention of this phenom a few weeks back when I pointed out what I see as the latest incarnation of this absurdity. e.g. Facebook™ internet providing solar drone. To wit:

Why is the above relevant? Fair point, and it is this: It sure is a nice thing to be able to bring access of the internet to – BILLIONS!

 

(Remember that “eye-balls for ads” model is the key, and this offers up the main course for the headline reading algos’ to feast upon. But, back to the headline.)

 

That’s just “FANTASTIC!” right? I mean all the ads for fresh eye-balls that have not only never had the opportunity to have a Facebook account, but never had access to the internet, and probably never even hear of it! Oh, the money they’ll spend and the profits to be made.

 

Did you just have a “Wait…What?” moment there? I hope you did. If not read that last line again only slower and let it sink in. I’ll come back in a moment.

 

Did it hit you? For those not sure of where I’m going re-read my earlier quote above, particularly the line: “Spend (or lose) $100mm per quarter is perfectly acceptable, and even encouraged, as long as you can show 102 million eyeballs came for free.”

In that article I cavalierly made the comment that Elon Musk and Jeff Bezos would nod their head in approval. For this has become so blatantly obvious to anyone paying attention, it’s now downright comical.

Why? As I’ve been stating for years – It’s all about how to play the headline reading, algorithmic, front running, HFT, trading bots.  Hint: Remember how every time it seemed Amazon™ stock valuation was questioned there was suddenly barrage of “news” about drone deliveries? All coincidence I’m sure. After all it’s not like it worked for the Fed, right?

Yet, if you want to possibly buttress the idea that maybe there’s a little more to all this “coincidence” than meets the eye or press release. This week we have no finer example for one to ponder than Mr. Musk himself in what can only be deemed as one of the most blatant examples of what I’ve coined “future-hype.” Via his Twitter™ feed. To wit:

“Just received verbal govt approval for The Boring Company to build an underground NY-Phil-Balt-DC Hyperloop. NY-DC in 29 mins.

 

If you want this to happen fast, please let your local & federal elected representatives know. Makes a big difference if they hear from you.

 

City center to city center in each case, with up to a dozen or more entry/exit elevators in each city”

Sounds “fantastic!”, right? Sure does, only one problem. This is all “news” to those whom one would construe are the “approvers.” Again, to wit:

Via New York City’s mayoral press secretary Eric Philips:

“This is news to City Hall.”

 

“also, if you’re stopping by City Hall, please bring a copy of the proposal. That would help.”

Via USATODAY™ reporter Nathan Bomey:

“I just talked to the New York MTA about this. Press aide is so flabbergasted that they’re asking me to spell Elon Musk’s name for them.”

Can you say, “It’s different this time?” Or, does one need to be shown a “picture” as the Silicon Valley aficionados likes to call them, for why this seemingly brazen, over the top claim, needed to be stated in the first place? Fair enough. Once again, to wit:

(Chart Source)

Suddenly everything about the “future” is getting questioned. Especially when it comes to all that future P/E payoff in riches. Or. said differently: “If it sounds too good to be true, maybe it is.” But we shall see, after-all…

Earnings are just around the corner.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
order66's picture

Actually have solid support at 280 and 240. Not that looong a way down.

donefuhkingaround's picture

Suddenly everything about the “future” is getting questioned.

 

certainty about the future is a sign of mental illness

NEOSERF's picture

 

Here's another one for you

Jeff Bezos’s first Instagram post: ‘ROCKET FACTORY COMING SOON’

Published: July 21, 2017 12:31 p.m. E
T

ParkAveFlasher's picture

The 2nd Ave subway tunnel was proposed in 1919, broke ground in 1972, and was finished just a few months ago.  98 years from feasibility to opening.  That's just from 96th St. to 72nd St.  The full project will run 8.5 miles, for a cool $17B.

The Gateway Amtrak tunnel between NJ & NY is sorely needed, and forever a funding toss-up, too expensive, too complicated, etc.  The proposal tops at about $19B, that's just under the Hudson River, with the associated terminals.

Elon Musk has just gone full retard.

 

Squid Viscous's picture

maybe he can tunnel under Poland and get those jews out of Dachau?

oh wait, too late

zzzz88's picture

the bubble already started burst.

one very big bubble in china, le.com, the stock prices collapsed from 179 to 30 now.

amzon, tlsa, nflx business model is the same as le.

 

enjoy!

monoloco's picture

"It sure is a nice thing to be able to bring access of the internet to – BILLIONS!" 

That sounds much like "everyone will have access to healthcare."

4 billion will have "access" to internet, if they can afford a computer or a smart phone, just like everyone will have "access" to health care as long as they have the money to buy an overpriced policy and pay the deductibles. I guess "access" is the new buzzword.

Yen Cross's picture

  My dog has a red rocket,  over at the beach.

Nobody For President's picture

My Butler has a Candlestick in the Music Room.

not dead yet's picture

With his track record there must be some bad news coming out of Tesla. Just before bad news gets announced, and can't be explained away by fake in transit numbers or fake news suppliers came up short, Musk gets on the horn and makes off the wall announcements before hand and the stock goes up even when the the bad news is announced as the press and Wall Street deem Musk a genius and give him a pass.

Iconoclast's picture

Back to the IPO price before end 2018. In a 'normal' market an announcement by, for example; Volvo and Renault Nissan, that they're going to be all electric by approx 2020, would have halved tesla, as they've got the rep, the factories, the customers, the money, he's a fraud, a crook, a conman, who's now trying to make it all about his batteries, but there's some serious wall st gangsters propping up his toxic, shit fountain, narrative.

hanekhw's picture

It's getting rather difficult to differentiate between modern 'science' and the 'science' of psychiatry. They seem almost indistinguishable in their dysfunctions and ability to accept the destruction of civilization as just another benign 'process' to be accepted as necessary. Tax and regulate us into oblivion or medicate and 'counsel' us into vegetables. That's the 'future' we all have in store.