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trafficlight | 8 years ago

I have a hard time with the idea that SpaceX sits somewhere around $12B and Tesla around $50B (with most people arguing even that is absurd).

So to value Priceline at $100B is insanity.

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adventured|8 years ago

Priceline has generated $7 billion in net income the prior three fiscal years combined.

They may be overvalued, however they blatantly are providing an extremely valuable service. And if it were easy to replace or compete with (ie something of low actual value), the airlines etc would have already cut out Priceline and would keep the $2+ billion in annual profit for themselves (they've tried and failed repeatedly to cut out Priceline, which further speaks to its immense value to consumers).

I'm more surprised that you're holding up Tesla as a counter example to fluff valuations given their present valuation versus other car companies with actual immense profit such as GM or BMW.

richthegeek|8 years ago

So at least in traditional accounting their valuation would be 10 * 7/3 = $23B

But then again PE on stocks seem to have been getting higher and higher in this latest tech boom (bubble?).

trafficlight|8 years ago

That was my point with Tesla; it's absurd at $50B and they build real things and develop real technologies.