| I've often thought this too, but there are several huge exceptions to this, whilst outside of tech there are plenty of similar examples. First and foremost, there's the Exceptions: Google: P/E is more or less 20, decades already Microsoft: P/E is more or less 20, for a very long time There are not actually that high. Compare to BABA (P/E is >200), IBM (P/E >100), JD (P/E >600) And the reverse exceptions, non-tech with absurd P/E: Tesla: P/E is 40 (down from ~500 I might add) Boston Scientific: P/E is >100 and let's just shut up about crypto, because ... there's is a theme. Overwhelmingly the ridiculous valuations are financial companies and "semi-"government companies (meaning protected by government, but not benefitting the people of the country that government governs. Like BABA for example, or before their downfall, Theranos). If Tech becomes the P/E champion instead of "almost-but-not-quite" corruption companies that tend to dominate that, I feel that's a very good thing indeed. |