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The biggest issue is whether or not WeWork can sustain its outrageous growth, which seems to have been the key to its soaring valuation.
The only rational excuse Google investors have for owning a stock priced at 220 times earnings is its outrageous growth: Google owns 40% of the market for advertising revenue generated by search keywords.
And with a fresh batch of college students walking into this market every year, the outrageous growth in these prices are often left unseen.
We can point to rampant voter suppression, now given legal support with the partial suspension of the Voting Rights Act; the outrageous growth of corporate political power and Wall Street's unspoken immunity from the rule of law; and the replacement of democratically elected governments with appointed emergency financial managers in the state of Michigan.
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James O'Shaughnessy, author of What Works on Wall Street, concludes that over the long term, investors are better off with the right type of laggard stocks than with outrageous multiples for growth stocks.
"They discussed dramatically the recent lynchings in Georgia and other outrageous violations of civil liberties as evidence of the growth of Fascism".
"Not cheap, but not outrageous for a relatively high quality asset with strong top-line growth, current profitability and margin expansion potential," he wrote.
Mediocre returns, outrageous fees and a whiff of scandal have not stopped the hedge fund business from enjoying explosive growth in the past decade.
Its currently valued at an outrageous 134 times latest 12-month earnings, but after taking into account its astonishing 50% earnings per share growth forecast for fiscal year 2007, that goes down to 28 times consensus earnings for the next 12 months.
Just outrageous".
"25!" Outrageous.
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