Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Kirk's Market Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: y2kate who wrote (17565)	12/9/2023 3:40:54 PM
From: Elroy	1 Recommendation Recommended By Kirk © Read Replies (1) \| Respond to of 26851

I think the R2K is entering a bull cycle R2K? The trailing PE ratio is 23.99 and the forward PE ratio is 13.66. For a server maker, that sound expensive. I don't know much about servers, but the space hasn't been exciting for decades. It was a growth space in the 1980's and maybe sorta OK in the 1990's. I would wonder why other server makers can't do the same thing as SMCI, at 10% lower sales price, and voila, price competition ruins the whole story, as SMCI matches the lower price rather than losing it's segment share, and the competitor again lowers it's sales price because they, you know, invested all this money to be in this segment, so they gotta move some servers. I think the proprietary bit in servers is in the chips and the software, not in the server.