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"They don't accept the current valuations.
Two arguments are being used to defend current valuations.
But that stopped in 2000.So how are current valuations?
When this happens, current valuations will seem laughably small.
But the franchise is far from dead...as current valuations imply.
Given current valuations and our structural concerns, we think investors should avoid the sector".
But their current valuations assume that this sort of growth will continue indefinitely.
Part of the explanation lies in a mistrust of current valuations.
"Comparing current valuations to the dot-com bubble is simply irresponsible".
Given the current valuations, Goldman and Morgan Stanley may want to pay attention.
Meanwhile, the consolidation process continues and we believe current valuations could offer certain players the opportunity for strategic stake purchases.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com