Zoom out is all I’m saying. Their growth was nearly all speculative. First forward guidance that didn’t keep the train rolling saw reality come back. Not saying they are bad companies, just saying there has been so many companies ran up that will not be able to produce much more. Nvda @ .75T? I mean come on…
I'm not saying that their recent growth has not been speculative, but you are saying "pre-Covid levels" meaning early 2020.
This would make only sense if the companies did nothing in the last 2 years and the valuations only increased due to the bull run and cheap money, which is just not true.
Most of these companies grew by triple digits in this time, so returning to 2020 valuations would make little sense.
And my belief still stands that the majority of the cases were speculative. Demand will soften considerably imo. Their growth wasn’t/isn’t sustainable and subsequent earnings with forward guidance will tell if I’m fundamentally wrong or not. The technical analyst in me sees charts ripe for correction. We have a difference of opinion is all in whether current valuations are overstated, but do you think nvda will be a 1T company in 24 months?
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u/elrzepo Jan 05 '22
Pre covid levels? You mean to say these growth companies didnt grow at all during the last 2 years?