High Stock Valuations
The cluster focuses on discussions about extraordinarily high stock market valuations, especially for tech companies, with many commenters arguing they signal a bubble akin to the dot-com era due to low interest rates and speculative fervor.
Activity Over Time
Top Contributors
Keywords
Sample Comments
Because everything is crazy expensive currently. We‘re in a bubble. Look at the valuation of WD-40, Bitcoin or Shopify for example. WD-40 had a 500k annual revenue and is valued at 2.6 billion. Their free cash flow is only about 100k, so they would need 26 years to buy all stocks back at the current valuation assuming no growth in earnings.As another example look at the current PE ratio of the companies in the S&P 500: <a href="https://www.macrotrends.net/2577/sp-500-p
Maybe valuations are just way astronomically off right now.https://www.bloomberg.com/news/articles/2021-02-12/warren-bu...
You are not alone. Regular (non-tech) stock market analysts are comparing current valuations with the dot-com bubble.But there is no TINA ( https://www.investopedia.com/terms/t/tina-there-no-alternati... ).The money needs to go somewhere.
Or - stocks have been ridiculously overvalued for a while now and are just coming back to earth somewhat. https://www.longtermtrends.net/market-cap-to-gdp-the-buffett...I'm not saying I know that's what's happening. But I wouldn't be surprised.
Aren't the high valuations in cash and stocks enough incentive?
At overinflated values I'm sure. I guess this is what happens when interest rates are low and all the good companies have been bought up.
Their valuation is not going to stay this high...
This is mostly a result of insane stock market valuations. It's not real money, and could be taken away at any time.
SSShhhhh.....people need to stop questioning these high valuations, seriously. People might suspect a tech bubble, or something...
No, and it is one of a number of high profile companies that could never sustain their growth.I think there are at least two reasons for the absurd valuation.1) The growth in Western inequality has pushed more money into fewer hands. They are desperately short of assets to buy, so they crowd into certain assets, pushing the prices too high.2) The Emperors new clothes effect. Nobody who has invested wants to pull out first