I am stunned when I see Alphabets P/E; with the endless moon shots and infinite bank account, stellar growth, and growth potential I would have thought Alphabet would be priced for its potential growth like so many companies that aren't even close to Alphabet, or as likely to hit big on their moonshots.
But I see companies with astronomically higher P/E ratios compared to Alphabet. Amazon's roughly 180 and I think it can be argued it is justified. But even other companies that have the same P/E as google don't even compare to google's potential, Red Robin Gourmet Burgers has a PE OF 110... Netflix 206... Scott's Miracle Grow company has a higher PE then Alphabet at 37... how is this possible? how can someone justify buying this burger restaurant, video streaming service, lawn care company and thousands of other companies with similar PE ratios and even greater PE ratios over a monopoly search engine that buys, invests in, or just creates a new division when it wants to try a new potential life changing technology?
I personally believe Alphabets self driving car division alone, Waymo, is justification enough to have the PE be at least double. Which is why I bought a sizable sum of Goog recently(sizable for me).
I appreciate any insight in to why anybody would buy anything but this monopoly.
*First post on any Reddit sub, sorry if I'm doing it wrong. Thanks for any insights y'all.
Submitted May 23, 2017 at 11:33AM by jran16 http://ift.tt/2rPHU6l
