APT 0.00% $66.47 afterpay limited

I agree that it's likely there will be a short term pullback,...

  1. 9 Posts.
    I agree that it's likely there will be a short term pullback, but you can't really judge a stock based on PE value alone. PE values tell you what price it was worth yesterday, and you are buying for tomorrow.

    The stocks that make the greatest gain typically have a high PE, because people expect it to grow fast/smash expectations. Low PE stocks have a low PE for a reason - no one wants to buy them. If no one wants to buy the stock it will not grow, no matter how cheap it seems.

    There are lots of companies with a high PE that aren't making money. Think Spotify.

    My thoughts are to keep holding/buying until there is a clear slow down of growth in the USA, or if something drastic happens with the regulators, then there will be a massive pullback (signal to sell). Until then this will keep surging upwards and the shorters will likely be burned if they get too greedy.
 
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