Their future earnings are questionable, which is why the PE is so low. Their current earnings are being fueled by a surge of hype motivated ai funding, that will dry up like that in the event of a bubble pop.
Arm is only as high as it is because only 110M shares are available in the public float. Softbank has the other 900M of them. It's priced because of scarcity
That company makes $4B a year and has a market cap of 180B with a forward PE of 92. It makes no sense. It doesn't even build its own chips like Qualcomm/Mediatek/Samsung/Broadcom do. It's a glorified royalty and licensing company.
Value investors' resistance to reality on NVO’s trash valuation is only rivaled by the $59 resistance ceiling built from bagholder tears and PE ratio delusions.
Whenever I try to evaluate a company with PE ratio over 50, I ask myself whether it is a better business than NVidia.
The answer is ~~almost~~ always no, so I just add more NVidia.
Actually it isn’t. Overvalued and above trend aren’t the same thing. So trend here refers to the trendlines of 50 day simple moving average, and 21 day exponential. Goog is way above these points, NVDA is actually between both of them.
Now valuation is another story as NVDA is way higher valued than GOOG, but GOOG’s historic valuation is lower than it’s current PE by about 13%
If you have META calls, I do not think you should be too worried. RSI is 25 and PE is approx 21 forward. There has been a lot of put buying today but most of those puts would be close to 1 delta soon, except for the truly regarded ones below 600. If it can do 630 decisively tomorrow, a fierce upside to 660 is definite.