You are missing the entire point here. Stocks are not valued based on what they earned last year. They are valued based on whether people think owning them wil

You are missing the entire point here. Stocks are not valued based on what they earned last year. They are valued based on whether people think owning them will earn them a profit in the future. You can certainly wait until a company has proven itself to invest in them. The problem with that is you will never get more than marginal returns. If you waited until Amazon was fairly valued, you'd probably still be sitting on the sidelines. Likewise with Apple. If you want guaranteed returns, you buy boring things like utility stocks and accept your 4% dividend and 5-10% growth. If you want bigger returns, you absolutely have to invest in things which some people consider over-valued. There is no other way. You just have to be good at picking which companies are going to be successful. Tesla, the jury is still out. I'm playing with the house's money at this point though. I am confident they aren't going to crash and burn entirely though. Comparing them to Gamestop doesn't make sense. Outside Reddit, there is no story with Gamestop. Tesla has products and growth, it's just a matter of finding where that growth ends.