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Rivian investors who bought in todays price are going to smoked by a truck in the not too distant future. I love what Rivian (& Tesla) are doing but these P/E r
by boringg 5y ago
Rivian investors who bought in todays price are going to smoked by a truck in the not too distant future. I love what Rivian (& Tesla) are doing but these P/E ratios are from another planet and are feeding off the hype train.
Unless the world internalizes that P/E ratios have now permanently been reset at crazy high valuations it is not sustainable price wise.
With this valuation - the amount of execution risk and market penetration risk is formidable.
- asdff 5y agoRobinhood literally pushed me a notification that their ipo was available. Never even looked up the company on the app or heard of it really before that notification. Smells like a pump, waiting for the dump now.
- yaitsyaboi 5y agoYou sure they didn’t push the notifications because it’s the biggest stock news today?
- asdff 5y agoThey never push me other messages just for these meme stock IPOs I've never heard of.
- deleted 5y ago[deleted]
- drexlspivey 5y agoP/E is a meaningful metric for established companies that have exited the hyper-growth phase and have reached some scale. Not so much for younger companies/startups because it completely ignores potential future growth. You can’t compare the P/E of coca cola with Rivian or Tesla
- boringg 5y agoActually you can compare the P/E to other growth companies and you can determine what size and scale a company needs to get to and how much revenue they need to get to justify the P/E. You can also determine how much hype is attached to a company.