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Nice to see projections and figures for these companies but... I wonder when reality will hit these non-earning tech stocks. The P/E ratios are just absurd. Su
by 0xDEEPFAC 6y ago
Nice to see projections and figures for these companies but...
I wonder when reality will hit these non-earning tech stocks. The P/E ratios are just absurd. Surely the FED can't hold the dam for much longer?
- shakezula 6y agoThe thing is - it might never hit. If the market has assumed the risk, the model of a tech stock might have fundamentally changed.
- 0xDEEPFAC 6y agoHmm, I suppose it's different this time?
- anamax 6y agoWhat's "reality"? P/E need not have anything to do with NPV, which is the key. Suppose that I'll charge you $1000 today and next year and then give you $1000/year "forever". The P/E analog this year and next is horrible, but that's a great investment (for you - it's lousy deal for me). My point is that P/E is only useful when a company is roughly stable now and into the future. If it isn't, P/E is a lousy predictor of NPV.