Peter Oppenheimer, the chief global equity strategist for Goldman Sachs, points to the ratio of stock price to earnings (P/E ratio) of current major tech stocks compared against the ratios of stocks during past bubble bursts. Financial Times uses a variable width bar chart to show the difference.
Besides the meme-ish Tesla stock, the rest (of the Magnificent 7) seem low in comparison. If you’re looking for a sign that there’s more room for the bubble to grow, this would be it.
On the other hand, we talk in trillions of dollars now for these giant corporations while other areas of the economy seem less great. So use that information as you like.
Visualize This: The FlowingData Guide to Design, Visualization, and Statistics (2nd Edition)
