Is forward PE useless for valuing AI stocks? Two technologists debate the bottom
tengyanAI · x · 2026-11-08
QwQiao argues the AI trade won't bottom until investors stop valuing companies on forward PE — 40x isn't expensive if earnings grow for decades, 4x isn't cheap if earnings last 18 months. tengyanAI pushes back: PE is the near-term proxy because it's easy to understand and NPV of all future cash flows is uncomputable in hypergrowth markets; 'stonks are a meme.'
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