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p/e on these sorts of "gonna take over the world" sort of companies can be astronomical. certainly more than 35. i wouldn't put much faith in uber's numbers n
by codecamper 10y ago
p/e on these sorts of "gonna take over the world" sort of companies can be astronomical. certainly more than 35.
i wouldn't put much faith in uber's numbers now. they aren't trying to make profit. they are trying to grab marketshare.
- tyre 10y agoGP's example of a p/e of 35 assumes that they turn around from losing $3.5bn/yr to making $2bn in profit per year _and not altering their valuation_. Not only that, but, assumedly to do so, they would have to switch away from high-growth mode to profit-mode. That's no longer deserving of a "gonna take over the world" p/e.