Outrageous Predictions - Five Overinflated Tech Companies
See the overinflated stock valuations of five of the biggest US tech firms, visualised and compared, in this short infographic from Saxo Capital Markets. All five have expanded in size this year – Amazon has an enormous market capitalisation of $167.8 billion, Twitter at $26.77 billion, Netflix at $21.08, Pandora Media at $5.21 billion and Yelp at $4.22 billion. Moreover, extremely high forward price/earnings ratios relative to the S&P 500 index average suggest very inflated valuations for these five stocks. Could these five firms “wake up to a nasty hangover in 2014”? Peter Garnry, Head of Equity Strategy at Saxo Bank, predicts that they will and that the synthetic index used to trade these stocks will drop from a starting point of 100 to 50.
