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Thursday, May 5, 2022

Many tech stocks that have crashed are still too expensive to buy

Others, including Intel and Meta Platforms, look cheaper

I found this list of major tech stocks crashed on Twitter on April 23:
I analyzed all of those stocks last year. When thousands of stocks fall by 70% -80% or even 90%, there will be some good news out there.



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They just revealed what they believe are the ten best stocks for investors to buy right now…

See the 10 stocks



Courtesy Grizler.com

#grizler #stock #trade


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So I got to the office the next day and compiled a list of stocks that I call the “Big Hat Crash Box” (not a basket, but a box, see?). Then I picked up a spreadsheet covering the next 12 months' income as well as the total amount of money and expenses. I took the average growth rate analysts for the next two years posted on Yahoo Finance and summed it up considering their numbers are very high - I want to use very careful estimates. I then divided each market cap into those numbers to estimate what the real P / E of these many stocks could be in a few years.
You can see several names, including Meta Platforms Inc. FB, -2.56% traded at very low prices to earnings when we averaged three and five years abroad. Here's a look at the entered words (in bold are the ones I own):

Company Ticker P/E – three years out P/E – five years out Comment
Verizon Communications Inc. VZ 6.8 6.7  
Intel Corp. INTC, -6.94% 7.9 7.4  
Roku Inc. Class A ROKU, +1.39% 11.1 7.0  
JD.com Inc. ADR Class A JD, +6.66% 16.0 10.2  
Qualcomm Inc. QCOM, -5.74% 11.4 10.3  
Meta Platforms Inc. Class A FB, -2.56% 12.9 11.1  
PayPal Holdings Inc. PYPL, -4.52% 13.9 10.6  
Alphabet Inc. Class C GOOG, -3.72% 13.2 10.3  
Uber Technologies Inc. UBER, -4.08% 16.8 13.0 Using 2026/2028 estimates.
Spotify Technology S.A. SPOT, -1.00% 19.4 12.9  
Shopify Inc. Class A SHOP, -3.71% 25.4 14.0  
Apple Inc. AAPL 18.3 16.6  
SolarEdge Technologies Inc. SEDG, -1.57% 26.2 16.9  
Zoom Video Communications Inc. Class A ZM 21.4 17.1  
Amazon.com Inc. AMZN, -14.05% 23.0 18.0  
Rocket Lab USA Inc. RKLB, -1.73% 20.5 17.7 Using 2026/2028 estimates.
Wayfair Inc. Class A W, -7.73% 29.9 18.5  
Tesla Inc. TSLA, -0.77% 31.0 17.3  
Nvidia Corp. NVDA, -6.24% 29.5 21.8  
Block Inc. Class A SQ, -4.87% 34.7 23.0  
Rivian Automotive Inc. Class A RIVN, -6.03% 56.1 28.1 Using 2030/2032 estimates.
Netflix Inc. NFLX, -4.59% 43.1 35.3  
Unity Software Inc. U, -5.03% 123.1 34.7 Using 2026/2028 estimates.
Workday Inc. Class A WDAY, -4.07% 147.1 70.9  
DocuSign Inc. DOCU, -5.12% 268.5 110.7  
Snowflake Inc. Class A SNOW, -7.68% N/A 629.2  
Teladoc Health Inc. TDOC, +0.75% N/A N/A  
Twilio Inc. Class A TWLO, -5.97% N/A N/A  


The P / E marked “N / A” indicates that the company is expected to post a full loss for that year.


The good news is that most stocks are less expensive when approaching anywhere to deliver their business plans for the next three to five years. The sad thing is that many of them are still expensive. I expect Unity with others to grow faster than the speculation I put on these spreadsheets, so I'm sticking to that word for now.


You may have noticed that I stand out from Roku Inc. ROKU, + 1.39% Indeed, I have started building a new position in this stock market. I plan to give myself more space to buy more if it continues to crash with the wider market for fictional technology.


Snowflake Inc. SNOW, -7.68% and Twilio Inc. TWLO, -5.97% are good companies and I would like to buy them at some point, but as you can see in the chart above, they are very expensive stocks and will probably continue. be it for another five years unless they grow much faster than my successive estimates. Netflix Inc. NFLX, -4.59% is probably still very expensive, but since the company is still the leader of The Streaming Revolution, I intend to give it another go. I could be a strong NFLX buyer for around $ 150.


I have been buying and investing in Nvidia Corp. NVDA, -6.24% and Advanced Micro Devices Inc. AMD, -4.60%, as prices for some virtual mining chipsets will drop sharply.


In that note, I also sold all my ETHUSD Ether, 0.23% from my hedge fund (I still have a small asset I had for years). I think the price of ETH should go down at some point as the “gas finance” economy is very high for most businesses. This creates all kinds of competition for the smart Ethereum contract platform. Everyone, including the founders of Ethereum, is aware of this and should make a conscious effort to address this from time to time, but they keep putting it, perhaps trying to keep ETH as high as possible for as long as possible even if it hurts ETH's long-term prospects.