$ARM Holdings Ltd(ARM)$ They barely make a couple billion a year in REVENUE, giving them a P/S ratio of 34. That is absurd. All this is based on this idea that ARM can be the chip of the future and such. That just isn't happening. ARM already holds around half of all chips in the world sold under its architecture, yet somehow it still has really low earnings and sales. This is because licensing and royalties are just not super profitable. There's a reason x86 isn't exactly making Intel billions.
It'll probably stay high for a long time, because that's just how bubbles work, but eventually it has to crash; otherwise, it'll have to grow an INSANE amount over the coming years to justify that price.
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