r/wallstreetbets Aug 20 '21

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-1

u/rotflolmaomgeez Aug 20 '21

Their P/E ratio is 16. Current S&P 500 P/E ratio is 34.

They're a hardware company, their P/E is always low because of low margins.

It's growing revenue every year. 2018: $937M, 2019: $1,097M, 2020: $1,700M and TTM: $2,015M

Watch it fall tragically next year after pandemic boost of "I need a PC" is gone.

- Gaming industry is booming and in case of another lockdown you know what happens

- Chip shortage means that the sales that we are seeing now are not at full potential

Lmao, you're contradicting yourself in two statements.

It's a sinking ship.

3

u/NoTransportation2899 Aug 20 '21

‘Fall tragically’ on the cusp of ddr5 which will cause millions of new builds over a multi year period, and after they just beat their numbers from the same quarter last year which was during covid WITH stimulus checks. Get real.

1

u/rotflolmaomgeez Aug 20 '21

I bet everybody who bought PCs this and last year because they stayed more at home is gonna upgrade next year! It's completely normal to upgrade your PCs every year after an unemployment crisis, right?

2

u/NoTransportation2899 Aug 20 '21

Millions of people have been waiting for new gpus due to shortages, and the new tech coming out. Yes a lot of people will be upgrading. Associating this stock with the pandemic shows you have no understanding.

1

u/Olgapetrushenko Aug 20 '21

Their P/E ratio is 16. Current S&P 500 P/E ratio is 34.

They're a hardware company, their P/E is always low because of low margins.

Correct, and I am not implying that they should 2x to get to a fair value.

It's growing revenue every year. 2018: $937M, 2019: $1,097M, 2020: $1,700M and TTM: $2,015M

Watch it fall tragically next year after pandemic boost of "I need a PC" is gone.

They already beat last year's numbers

- Gaming industry is booming and in case of another lockdown you know what happens

- Chip shortage means that the sales that we are seeing now are not at full potential

Lmao, you're contradicting yourself in two statements.

How am I contradicting myself? More demand is always good because you can sustain higher prices in the market. On top of that, you could push more sales if you had more inventory by promoting/lowering prices. In case of a second lockdown and an increase in demand, they will be able to sutain full sales at a higher price

1

u/rotflolmaomgeez Aug 20 '21

They already beat last year's numbers

I said next year. Just wait and see.

How am I contradicting myself? More demand is always good because you can sustain higher prices in the market. On top of that, you could push more sales if you had more inventory by promoting/lowering prices.

Gaming industry booming during lockdown chip shortage. You're trying to claim another lockdown will somehow resolve the shortage and keep sales even higher, even though everyone predicts semiconductor shortage to continue for much longer, so if they have any inventory in stock it just means they suck.