Hey Todd,
In short, the tech bubble had a lot of tombstones that focused on an idea and euphoric sentiment (with a power factor). No revenue and no actual numbers to post. Incredulous how analyst’s kept recommending higher price targets!
The Saul type stocks exhibit strong YoY Rev growth. Strong YoY growth not at the expense of higher YoY expenses. Total addressable market should be high to continue the long runway. Strictly using Case Schiller metrics aren’t adequate since these SAAS companies don’t have a typical balance sheet found in the 20th century. Moreover, what’s the cost to obtain an additional customer and then retain them with add on subscription premiums versus a durable good from CAT, GE, GM? Should PE values be allowed like AMZN? Maybe, depends if management has the special Bezos sauce.
I greatly enjoy and learn from Saul and Bear’s EOM reviews. They typically go over the most recent earnings. In addition, other will typically review the earnings and provide great insight.
~Scott