Tinker,
Show me one of the higher multiple stocks that have fell 50%. I can show you Nvidia, Pivotal, Pure, Talend, Nutanix not quite, and I am sure many others that were considered more “reasonably” valued.
Tinker I think your time frame is to short. You are only thinking within the last year. In fact what does a year mean in anybody’s time frame? Do you really think a year means anything? Also I can show you posts of people that thought NVDA was to high before it crashed and we both saw what happened to it although it is starting to work its way back up.
It almost appears as if there is an implicit moral issue here instead of an investment discussion. It is too good to be true. Market “darlings”, whatever.
I am not sure where you got this from my post. I didn’t mention market darlings or anything to do with a specific stock. I think you are trying to read something into my post that was never there. I was talking about when stocks fall. It could happen to anyone of them when their growth drops. You were surprised by NVDA as much as the next guy when it dropped. We both thought it was going to keep going up but when it dropped we shrugged our shoulders, it happens. Also Twlo was sold out on this board because of Uber, it dropped, but it came back after it was realized that it was not that big a deal. Shop was a darling on this board for awhile, we saw everyone getting out of it because it’s growth was slowing, look at where it’s at now. It dropped almost 30% before starting it’s climb back. So let’s not act like these things do not happen. Instead of trying to cheer lead, let’s try to be more sensible and acknowledge the good and the bad.
When business fundamentals turn sure. But during market crashes the stocks with the highest multiples and commensurate highest business fundamentals have overperformed going down and going back up.
Now you are getting back to what my post was about. You know as well as I do that when the market crashes the highest multiples will drop most likely the farthest, but if you hang onto them they will come back as long as fundamentals are the same. I am not trying to scare anyone but I am being realistic. A 20% drop is something to laugh about, we will see a lot bigger drops than that.
Andy