The Nose Bleed Price to Sales

While I have been saying for a while that overall the market is not likely in a bubble, I also think that tech stocks are way ahead of themselves. Why? Check out these price to *SALES* ratios.

NVIDIA is trading at 34 times sales. 34. As a famous CEO once say, “If you pay 10 times sales for my company, that means that even if I have a 100% profit margin, it would take you 10 years to just get all your money back.”

Some of these valuations are … rich to say the least. Amazon doesn’t look that bad, but that’s because it’s a Walmart + AWS. If I take Amazon’s market cap, subtract off twice of Walmart’s market cap, AWS is selling at over 60 times sales.

These things are expensive…