Quote (Budgeting @ Apr 29 2021 01:44am)
any commentary on why microsoft dipped after their earnings beat? i thought they reported solid results.
this is true lol
Msft dipped in my opinion because the stock already went up significantly in anticipation of higher earnings.
Facebook when I was pounding the table on to buy it was at like a 25x pe with a forward pe sub 20 which is less than the sp 500. It’s too low for a tech company that has been consistently growing earnings at that rate. It was only that low because there was a lot of regulatory crap with Russia bots, fake news, Australia issues, etc basically scaring investors.
Msft is at a 38 pe currently. It’s still a great long term hold but that’s a
multiple where even if earnings are growing by a lot i think the stock needs to trade somewhat flat for a quarter or two so it feels more affordable.
I talked about it before but alibaba is another company that has the Facebook feel to it. High growth but stock price is being discounted because of noise and regulatory. I still think that company has a lot of upside and patiently waiting.