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Many of the big tech stocks are insanely overpriced according to traditional investment measures. The rational reasons to support those prices are expectations
by Silhouette 5y ago
Many of the big tech stocks are insanely overpriced according to traditional investment measures. The rational reasons to support those prices are expectations of similarly extreme future growth or a belief that it might be a speculative investment but the dollars will keep pouring in.
The discussions this week aren't just a wobble, they're about whether Netflix can still generate that kind of extraordinary future growth. If there's even a strong hint that it might not then the speculative bubble bursts. If there's a serious expectation that it won't then the growth investors are out as well. One stock price crash, coming right up.
- scarface74 5y agoNetflix was never a “Big Tech stock”. It’s revenue was nothing compared to the Microsofts, Apples, Amazon’s and Google’s of the world.
- Silhouette 5y agoIt's literally the N in FAANG, a term that came from the investment world and referred to (at the time) the five tech stocks that had the most impressive performance.
- scarface74 5y agoIt was treated that way by one commentator on MSNBC. But let’s not forget that the original term was FANG and didn’t include Apple - the most valuable tech company or Microsoft that has been in the top 5 since 2000. Netflix is around #50 in the most valuable companies - it at least it was.
- TedDoesntTalk 5y agoOn one hand, their product is not tech… it’s media. On the other hand, they’ve invented some of the best tech and have some of the best engineers.
- scarface74 5y agoTheir streaming tech is a commodity. Any media company can throw money at someone like BamTech (now owned by Disney) and spin up streaming infrastructure.
- TedDoesntTalk 5y agoI did not know that. Certainly wasn’t true in the past. Glad to hear it’s democratized!
- stubish 5y agoAnd Streamotion (streamotion.com.au), part of Foxtel.