Reporting next week a stock that should have no business trading 200x earnings
YELP reports next week, but Yikes should be its real symbol trading at a 200 X Earnings multiple. Can this stock ever meet the hype that current investors are placing on its earnings growth? It probably doesn't matter if it can or not because shorts have had no luck betting against it, other than the little time span during the spring when they crushed the stock by nearly -50% from the high.
Currently though, this is just one of numerous stocks trading at nose bleed multiples, and its becoming increasingly difficult to find cheap pe stocks without some big time problem attached to it like huge debt, declining growth, or major competitor taking market share.
On the other hand its becoming as easy as throwing a dart to a list of stocks to find over inflated stock valuations, one needs to look no further than on Friday with Amazon. Investors found out the hard way with Amazon on Friday what a hyped up stock can do to your portfolio in the wrong direction.