> Maybe once in a blue moon a company with P/E of 500 is justified because they MAY be the next Google or Apple or Microsoft Well, in this case a P/E of 500 wo

> Maybe once in a blue moon a company with P/E of 500 is justified because they MAY be the next Google or Apple or Microsoft Well, in this case a P/E of 500 would already be a massive improvement. Twitter currently has a negative EPS (aka, no profits at all), so it doesn't even HAVE a P/E. > I wonder if this bubble will deflate slowly or crash and burn like it did back in early 2000s. Crash, probably, but not like in the early 2000s. The key difference now is that the internet is established and has multiple viable business models. Netflix has a P/E of 200, it wouldn't be surprising to see its stock price plummet from $400 to $40 (where it would then have a more sustainable ~20 P/E). But that won't change that the company is actually making money and has a profitable business model. However that doesn't help the various startups and such that don't have viable business models, like Twitter which just keeps bleeding money with no sign of stopping.