NVDA - one of the big tech companies trading for 40x revenue
I can only find one time in the last 30 years of one of the big tech companies trading for 40x revenue, where $NVIDIA Corp(NVDA)$ trades now.
$Amazon.com(AMZN)$ on 1/11/1999 and for a few days later in '99. Over the next three years, AMZN stock would fall 90%.
There's no precedent to this ending well.
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Amazon was growing at 280% when it traded for 40x sales, so the actual NTM figure would have been about 15x. I don’t have estimates from ‘99 off hand.
The bubble lasted another year+ for Amazon and the dot coms after this. So, very possible we keep inflating for a while.
In fact, for now I would say there’s to reason to think NVIDIA won’t beat estimates. Sentiment change is harder to gauge.
I won't be covering NVDA. But I will be looking at $Rivian Automotive, Inc.(RIVN)$ $LUCID DIAGNOSTICS INC.(LUCD)$ $Sunrun(RUN)$ after the close. Should be an interesting earnings day.
https://twitter.com/TravisHoium/status/1760280400260214974
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