It's not irrational exuberance, but rational. yes, a 200% rally was rational in terms of pricing in huge earnings, not a bubble. The huge rally this year was in anticipation of the blow-out earnings on Ai demand, which materialized.
The 1997-2000 period in which stock prices wildly departed from fundamentals was more of an anomaly than the norm, yet people assume that it's the norm. The late 90s and tech boom and early 2000s crash was an outlier that made people overly pessimistic in subsequent decades.
Nvidia is still very expensive and has 5 years of nothing revenue and earnings growth baked in.
Oh, I don’t have to imagine:
https://news.ycombinator.com/item?id=37241696
(Granted, selling covered calls isn’t exactly shorting, and I still made bank on the whole deal. But plenty of money was left on the table.)
200% rally or $200 rally? Are you talking about the rally from $500 to $700?
Earnings +12% over expected.
guiding for the Q1 +9.6 over expected.
New P/E about 45 (from trailing 12 months)
The only things left the rest of us can afford to eat.
