the crazy P/E rations for google, amazon, etc. seems to imply that the market thinks something important will happen there,
Google’s forward PE is 19x, vs the S&P500 on 15x. What’s more, this is overstated, because it involves the expensing of R&D, which logically should be capitalised. Facebook is even cheaper at 16x, though if I recall correctly that excludes stock-based-comp expense.
I agree that many other tech firms have much more priced into their valuations, and that fundamental analysts in the stock market realistically only look 0-3 years out.
Google’s forward PE is 19x, vs the S&P500 on 15x. What’s more, this is overstated, because it involves the expensing of R&D, which logically should be capitalised. Facebook is even cheaper at 16x, though if I recall correctly that excludes stock-based-comp expense.
I agree that many other tech firms have much more priced into their valuations, and that fundamental analysts in the stock market realistically only look 0-3 years out.