It is true that these asset light SaaS stocks are built differently than the traditional capital intensive companies. It is also true that many of these companies have bounced back time and again.
It is also true that many have fantastic growth runways ahead.
However, for what’s it’s worth, I think this time is different. One word: INFLATION, and it’s not transitory, imho. One of the main price drivers over the past few years was the persistent low inflation level of under 2%. Suppose inflation is 6%. In five years, that’s (.94)^5= 0.73, compressing valuation by 27%. This is why we are getting hammered mercilessly and will continue to do so until it falls to a level where they reach “Value” stocks level.
Being an ex-MIer, I’ve seen PS=4 as a low valuation level. Many of the stocks held here, including myself, were typically at 40, 50, 60…
DoesMIWork