Companies, during expansion phase, will not make profit until they become big and growth is streamlined. If Elon or other CEOs are expanding over decades, they will not result in profit.
Same way AMZN or TSLA goes to new takeovers (like SCTY) or factory expansion or additional borrow that results less profit or loss. Since AVGO gets in to higher profitability, he was trying to take either QCOM or CA.
The stock value goes up by expansion, by additional book value, revenue but not real profit for tax purposes.
I always knew that Facebook would not grow at 40%-50% in perpetuity. At its present valuation, I feel confident the price is worth the new - but lower - expected growth rate.
The valuation is compelling, the balance sheet is clean, and the growth is still there.
Last, I think a bet on Facebookâs stock is not just a bet on the social network itself but on one of humanityâs technological visionaries and the companyâs role in our technological future.
Whatâs more, I will go out on a limb and say something that was not said in the conference call: Facebook will never, ever get back to the 50% year over year revenue growth, and probably will not see sustained growth over 40%.
Facebook has bolted on other social networking applications such as Instagram and WhatsApp, but thatâs just the start. Facebook is moving into content streaming, having inked a massive Premier Soccer League deal, is beginning to dabble in the online dating world, is investing in AI research, and purchased the Oculus Rift developer to join the VR wave. With its $45 billion war chest, itâs in a position to continue to place these bets.
Assuming 30% sustainable revenue growth over 10 years, is P/E(ttm) = 28.44 and P/E(fwd) = 21.99 reasonable?
P/S = 10.94 (c/f Apple 3.92) and ROE = 26.14% (c/f Apple 45.37%)
You are feeling the same heat as wuqijun when TSLA is attacked I donât include myself because I only correct incorrect assertions and donât challenge opinions
Why do you want to open another bet with me when the first bet is not over 4 more years to go! Is implicit in the bet that FB would be growing very fast, otherwise you canât win. So is a redundant bet.
Not necessarily. What if Facebook crashed and burned for a year or two and then rises again like a phoenix and delivers a 50% YoY rev growth the following year?
Whenever someone say the world never without reasons or qualifications that just doesnât sit right with me.
No macro-bubble. AMZN, NFLX, CRM, TSLA and SPOT are in micro-bubble.
They share a few key characteristics:
⢠Low or negative return on invested capital (ROIC) and free cash flow
⢠Unrealistically high valuations: all 10 companies either have negative economic book values, or they have a PEBV above 20
⢠Expectations that they achieve heretofore unseen dominant market shares
Note that bubble can last years. So is too risky to short them. You would end up like Einhorn.
Investors that want to bet against these micro-bubble stocks can short them directly, but that can be expensive and risky for these momentum-driven companies. As the saying goes, the market can stay irrational longer than you can stay solvent.
Thereâs no macro-recession. But both Aapl and bidu are so undervalued that they are in a micro-depression. When Amzn, Nflx, and Tsla pop like a balloon, they will simultaneously blow up into a huge gigantic galaxy
I donât include myself because I only correct incorrect assertions and donât challenge opinions 
You lose!
