Nice to see projections and figures for these companies but...
I wonder when reality will hit these non-earning tech stocks. The P/E ratios are just absurd. Surely the FED can't hold the dam for much longer?
I wonder when reality will hit these non-earning tech stocks. The P/E ratios are just absurd. Surely the FED can't hold the dam for much longer?
Suppose that I'll charge you $1000 today and next year and then give you $1000/year "forever". The P/E analog this year and next is horrible, but that's a great investment (for you - it's lousy deal for me).
My point is that P/E is only useful when a company is roughly stable now and into the future. If it isn't, P/E is a lousy predictor of NPV.
If the market has assumed the risk, the model of a tech stock might have fundamentally changed.