Twitter hasn't made a profit once in its years of existence, and does not appear to have a way to make any. Snap said they might never profit in the prospectus.
How would you value these companies to reach the conclusion that losses are "over punished"?
The market is always right. I just don't believe anyone is willing to take such big risks of failure anymore with so little chance of winning. SNAP was priced so expensive and just to justify the 17$ it would need to make money for years or grow exponentially. Which both didn't happen in the last couple of years, growth is even declining.
The subset of the market called "equities traded publicly on U.S. exchanges" is right within its own local maxima of pricing such securities, but it's still subject to inflows and outflows, which depend on macroeconomic picture, interest rates and attractiveness of other subsets.
Specific securities, sectors or the stock market in general still can be overbought and oversold.
