4 ms·
TBH I'm not 100% sure what lesson to take from this. If in 2022, you thought that a) DAU across the entire family of apps was as high as it ever was going to be
by tqi 3y ago
TBH I'm not 100% sure what lesson to take from this. If in 2022, you thought that a) DAU across the entire family of apps was as high as it ever was going to be and b) that the broader economy was about to enter a recession, causing marketing spend to plummet, is a P/E of 9 still a bargain? Isn't that supposed to reflect potential for future growth, and if all the eggs were in the metaverse basket...
- 4death4 3y agoYes a P/E of 9 is still a bargain.
- paulpauper 3y agoA PE of 9 is comparable to lows of 2009. This is indicative of dire pessimism and unjustified.
- HDThoreaun 3y agoLarge cap stocks that have firmly exited the growth phase generally have a p/e of around 15. As long as you dont think profits will decrease a p/e of 9 is generally a hard buy.
- nostrademons 3y agoNote that Intel had a P/E of about 9 as of March 2021 - I remember because I bought it. Three years later, with the stock having gone down by ~8%, its P/E is now 108. Oftentimes when investors discount a stock relative to earnings, it's because they expect earnings will decrease.