Gst, do you remember the old America dream team which consisted of Amzn,Aol,eBay,Pcln,and Yhoo?
This is the new economy dream team and it tells you why.
>The near-term risk, however, is that many of these new leaders are priced at enormous valuations now. Ciena, for example, trades at 437 times estimated 2000 earnings; Juniper is at 517 times earnings.
Given those lofty price-to-earnings multiples, many analysts are worried the stocks could suffer a bruising selloff near term, if the market overall continues to slide.
Still, in the long run the stocks are likely to remain leaders--and continue to carry high valuations--as long as Wall Street trusts that they will show the rapid earnings growth that Intel and its peers once provided, analysts say.
The near-term risk, however, is that many of these new leaders are priced at enormous valuations now. Ciena, for example, trades at 437 times estimated 2000 earnings; Juniper is at 517 times earnings.
Given those lofty price-to-earnings multiples, many analysts are worried the stocks could suffer a bruising selloff near term, if the market overall continues to slide.
Still, in the long run the stocks are likely to remain leaders--and continue to carry high valuations--as long as Wall Street trusts that they will show the rapid earnings growth that Intel and its peers once provided, analysts say.
The near-term risk, however, is that many of these new leaders are priced at enormous valuations now. Ciena, for example, trades at 437 times estimated 2000 earnings; Juniper is at 517 times earnings.
Given those lofty price-to-earnings multiples, many analysts are worried the stocks could suffer a bruising selloff near term, if the market overall continues to slide.
Still, in the long run the stocks are likely to remain leaders--and continue to carry high valuations--as long as Wall Street trusts that they will show the rapid earnings growth that Intel and its peers once provided, analysts say.
latimes.com |
