I love the company, and I think management are great, HOWEVER 100x sales seems a rich valuation for any company. I have fully exited my position now and may well regret it, but I will be looking to buy back in tranches on significant selloffs. Rightly or wrongly I think during end of this year and into next as interest rates start to rise and inflation continues to play out we may see valuations contract, and NET is a prime suspect with its run up. I think at current prices I would prefer to add to AMZN, DARK.L than NET.
But I completely agree with people who just want to hold it through it all, you will do well long term if the company keeps delivering.
I know itâs crazy overvalued but itâs been âovervaluedâ since it IPOâd and itâs just been going through different stages of âovervaluedâ.
Iâm not confident in my dip buying/trading skills but I am confident in my ability to hold and stay long.
Earnings have been better and better, management continues to blow my mind.
Inflation shouldnât really be an issue for high growth tech stocks. (Even with future cash flow models being eroded by inflation)
When you think about it, (numbers just for reference) if inflation is high, 6-8% or whatever, would investors want to hold the average company paying its 2-4% dividend which doesnât beat inflation, or bet on the growth stocks which- if they preform would easily give double digit growth or at least beat inflation.
I was also reading a few articles issued by some of the major banks and they seem to have the same opinion. Inflation risk- to stocks isnât that bad.
I do understand margin contraction due to increasing rates however, just recently cloud issued 0.00% bonds dude 2026 and the company will soon not need to raise large amount of debt as next year they are projected to go break even. Management has said they will reinvest excess profits into the business for the foreseeable future.
A well run company will have refinanced their debt, the only thing rising rates will do is weed out zombie companies relying on debt and inflation will be the finishing blow hopefully.
REITS require caution but if you got in low enough to some of the quality ones you just need to ride out volatility and collect the dividends.
Lastly, Amazon sounds good but I disagree with DARK.L
Inflation can be good, depending on the company. Think Diageo and alike, theyâll just pass on the inflation element to customers due to âincreased costsâ.
The SP should in theory increase by a similar amount.
Fair enough, I love NET as a company, and held on through large run up but then it go to point I feel sentiment on it was a little âcryptoâ esque along with other names. I am looking to put money back in, but I mean like today DARK down 25% in low 700p range I feel is a better buy than NET at $180+. I will be watching NET earnings eagerly this quarter and see if any overreactions.
My price alert triggered today of $135, not buying but I set it to remind me to assess what price I would be happy to buy back in if it got to these levels again. Sub $100 would be very tempting if this market bleed continues.
