Please don't just downvote the post because I'm talking to AI about stocks, I want you guys to comment about it.
Basically there are some fantastic companies out there that I am invested in but whenever I ask the AIs to value the company based on it's revenue, growth, products, debt, stock based comp etc etc. They always come back with something along the lines of
"the stock is priced for perfection, any minor hiccup could cause the stock the crater".
"the stock has to maintain this 30%+ YoY growth for the next 5 years simply to justify it's current 2026 valuation".
etc etc and it's making me want to vomit because I know a great business is not the same thing as a great valuation.
I really want to invest in high growth companies that are fundamentally great companies, but every company I look at just has stupid valuations based on perfection. Whatever happened to the days when a company was great but also traded at a decent but not stupidly high valuation?
I'm on the fence because I honestly genuinely don't think tech stocks will ever trade at a good valuation ever again. Even Microsoft, which seems to be one of the most hated stocks at the moment, down 30% from the highs, still has a PE ratio of 22… This is like the high end of most tech stocks.
Even freaking Walmart has a pe ratio of 38.
To find good companies under 20 pe you have to start looking at China, like Alibaba and Pinduoduo, that's how bad things are right now.
ChatGPT, Claude, Gemini etc "stock is priced for perfection"
byu/AltruisticOwl156 instocks
Posted by AltruisticOwl156
4 Comments
GOOG and chill
After my day of testing some of the LLM’s, if any are going to take over and enslave the human race its going to be Chat GPT. That shit was sinister; REALLY!
So yeah, invest in Chat GPT.
..might as well make money off the annihilator ..before it annihilates us.
I mean they’re not wrong the Buffett indicator is at an all time high.
US large cap tech stocks are overvalued, I think most people know that and AI adjacent stocks are really priced for perfection, but outside the SP500 there are lots of undervalued companies.