3 ms·
I thought the substantial increase in interest rates mostly pissed away the fairies and unicorns, and people needed to prove they made real money now.
by ShroudedNight 3y ago
I thought the substantial increase in interest rates mostly pissed away the fairies and unicorns, and people needed to prove they made real money now.
- wredue 3y agoNVDA is up 200% YTD and was already massively overvalued at the start of the year. Others do seem to be backing off, but there is still definitely a lot of way overvalued tech out there.
- linuxftw 3y agoNVDA forward PE is 42.48, which isn't super crazy relative to other big tech companies (MSFT over 30). I suspect ARM's forward PE is double that ratio (>80). If NVDA's forward projections are correct, and they can maintain that same growth, then there is still room for upside. Personally, I'm not playing this game of musical chairs because I don't think these valuations are sustainable, but as they say, the market can stay irrational longer than you can stay solvent, so shorting is a terrible idea.
- wredue 3y agoPricing stocks today at what a company might be worth in 10 years is pretty much fairies and unicorns. Other sectors do not price in the way tech does.