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> Do you have a better hypothesis that would explain the extreme valuations of those stocks?

This isn't crypto, these are real, well run companies with good fundamentals.

The trade may be a bet that they are able to corner the market and extract more value. Maybe, it's wrong, but doesn't mean it's just empty hype.



> these are real, well run companies with good fundamentals

I'm not disputing that. But even "real" companies don't warrant P/E multiples in the three-digit range, unless there's a very good reason to expect them to grow their profits by 10x or more in the foreseeable future – and that has to be the expected value of earnings growth (roughly, the average growth over all possible futures), discounted by the time value of the investment.

P/E multiples over 100 are practically never justifiable, except as "someone else will come along and pay even more" – i.e., the greater fool theory.




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