4 ms·

I don't think you can claim that a company trading at 300 times its earnings is fairly valued. That's just way out of whack and can't last.

• _delirium 12y ago
  Eh that's pretty common in the US too, the usual explanation being that they're reinvesting their income in growth. For example Amazon typically trades at multiples of 700x earnings or more. In Amazon's case they claim that they could make a bigger profit if they wanted to, and investors appear to believe it.
  • jacquesm 12y ago
    Tech scales a lot easier than ketchup or school uniforms.
    • toomuchtodo 12y ago
      Yes. Tech has leverage like no other industry.
  • thewarrior 12y ago
    Yes. And it won't last. Either Amazon gets bigger or the stock price comes down.