4 ms·
According to Google Finance, their p/e is almost 40. Not sure they have enough growth in them to justify that valuation. Apple is 32 and Google is below 30.
by timmg 3y ago
According to Google Finance, their p/e is almost 40.
Not sure they have enough growth in them to justify that valuation. Apple is 32 and Google is below 30.
Overall, I think the whole market is frothy. But MSFT seems even more unjustifiable than the rest (other than Nvidia and Tesla :)
- aareet 3y agoI'll bet the higher valuation is because of their investment in OpenAI
- mattnewton 3y agoPeople are trying to buy exposure to OpenAI models running on Azure cloud.. I think that they are betting we are at an inflection point and not thinking about the fundamentals of Microsoft's existing businesses at all.
- huijzer 3y agoIf you assume that a tool like ChatGPT can add 30 minutes per day in office worker productivity and then estimate how many office workers there are worldwide and how much they get paid on average and assume Microsoft can maybe capture 10% of that value, then the market cap is not that crazy.
- stanski 3y agoCheck AMD's PE and then revisit MSFT.
- karmakurtisaani 3y agoSo they would have to double their earnings to be an investment that pays itself back in 20 years. Not an easy task for a company of that size, and even then not a very lucrative investment..
- chucke1992 3y agoMakes sense. MSFT has potential for growth, Google is basically lives and die by their ad revenue coming from Search monopoly and Apple lives and dies by iPhone sales.