Comment by dismalaf
1 day ago
Nvidia and Palantir PE values are at least based on future expectations...
MS and Apple's are based on what? Their margins don't have much room to get better so to increase income by 3-4x they need to increase revenue by a similar factor. Which is hard to imagine.
Or we're just in an asset price bubble, which I think we are.
MS and Apple PEs are based on stability. They’ll manage better than most to preserve their stability in all of the randomness ahead.
Palantir’s is based on the probability things get worse and they get more government contracts. In fact, it’s a bet on how much worse things can get.
> MS and Apple PEs are based on stability.
Definitely not how equities are priced.
I wasn't proposing a rational technical analysis view...
Apple spends a lot on buybacks so future expectations of them maintaining current margins might be sufficient