The topic is hypergrowth stocks, everything else is off topic, that is why off topic posts are deleted.
That’s perfectly reasonable.
High growth metrics in the businesses aren’t used to predict future value, just criteria to help the win rate of a momentum strategy.
Value, valuation, and value metrics are simply not intrinsically a part strategy based primarily on momentum.
Nor do they need to be…there is no intent to hold long enough for the weighing machine to matter.
It might well be true that lots of those picks are overvalued in the sense that their prices will be very much lower five years from now.
But presumably the practitioners don’t know or care, as they won’t hold that long. In that context, the value of the securities truly is irrelevant.
Momentum works surprisingly well. It’s difficult to execute well, but it works on average over time.
And yes, famously, it has stretches that it works very well and stretches that it works very badly.
There is no need for anyone here to think that the approach they use “over there” is wrong or misguided.
It is what it is. All power to them.
Jim