News for hackers. Stuff that matters.

A comment on Tech Stocks Roar Again in Faint Echo of 2000. Parent comment

Re:Tech Stocks Roar Again in Faint Echo of 2000 by nabla9 on Sunday October 29, 2017 @02:43AM (#15578232)
> are money-making machines

And they are valued as money making machines.

Amazon's profit margin is now just 0.59%. When economy hits downturn, it will hit Amazons profits and valuation.

It took eight years for Amazon to return back to its 2000 valuations after crash.

[ Parent | on HN ]
Re:Tech Stocks Roar Again in Faint Echo of 2000 by nl on Sunday October 29, 2017 @03:45AM (#15578391)
Amazon can turn up and down their profit whenever they like. They have proven it and the market knows it.
[ Parent | on HN ]
Re:Tech Stocks Roar Again in Faint Echo of 2000 by nabla9 on Sunday October 29, 2017 @11:58AM (#15579770)
Market knows it = it's already in the price.

Market bubbles are not caused by success or failure of the companies themselves. They are caused by overpricing the the companies. No matter how good the company is, it can be always overvalueud.

[ Parent | on HN ]