5 ms·
Microsoft's P/E ratio is a bit nutty. Investors are expecting big things.
by tempsy 7y ago
Microsoft's P/E ratio is a bit nutty. Investors are expecting big things.
- gzu 7y agoAlso this Nadella period coincided with a massive rise in passive investing and buyback of shares. Investors are buying the stock because it’s one of the largest in the indexes weighing in at nearly 5% of the SP 500 market cap. Because of passive investments and mutual funds trying to match passive (index) returns, a nickel of every dollar invested in the stock market goes directly to buy Microsoft without any human consideration.