Stock of the Day
Out of context: Reply #567
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- sarahfailin1
(continued, I guess)
Meme stocks should be the canaries in the coal mine of this market. When those puppies are finally dead, then you'll know this market has come back to regular prices.
Although the tech stocks have fallen quite a lot, they have a ways to go before their price to earnings is close to market average. Market **average** historically is around 16x price to earnings. Tesla is still about 150x, Nvidia is 60x, Amazon 78x, Apple 28x, and Nasdaq as a whole 25x.
About 16x is the PE *average* so half the time, it's actually less than that. Even if we only return to that average and don't go below it, Nasdaq needs to lose a little less than *half* its value (target would be ~7300).
In the dot-com crash of 2001, Nasdaq lost 90% of its value from the all time high. That was a mild recession.
POINT BEING, it's not crazy to think that this can and will happen, and calling the bottom of IXIC's decline at 9000 is pretty bullish, in my bearish opinion.
- there are a lot less companies around, something around 3K for all these indexes, mostly high growth
when the growth can't be sustained, the markets crashgrafician - expect again another halving of the companies list too (thru closing down, restructuring, etc.)grafician
- stay in cash for the time beinggrafician
- When do tech stocks have the same PE as P&G? 2001 There were no earnings. Nasdaq at 10k would be as far as I would go, MSFT, etc., are making fists of cash.formed
- Was 2001 really a mild recession?CyBrainX
- there are a lot less companies around, something around 3K for all these indexes, mostly high growth