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The P/E ratio is backward-looking, because it considers past earnings, not future earnings. AMZN has a P/E of 293. AAPL has 18. TWTR has 90. This is not a terri
by this_user 8y ago
The P/E ratio is backward-looking, because it considers past earnings, not future earnings. AMZN has a P/E of 293. AAPL has 18. TWTR has 90. This is not a terribly meaningful metric for tech names with huge growth potential.
- what_ever 8y agoOverall what they say make sense. It's coming down indicating that the growth is slowing down? I think 20% correction is huge and just unexpected.
- qubax 8y ago>This is not a terribly meaningful metric for tech names with huge growth potential. Think that was OP's point. That facebook has matured and is no longer a growth company.
- tonyedgecombe 8y agoIt means the market doesn't think there is any "huge growth potential".