I don't understand why tesla (a car manufacturer), uber (a ride services company), robinhood (financial services), doordash (meal delivery service) are in the treemap of "tech market" companies. OK, I take that back, I understand why (i.e. good PR by those companies to be included in a sector other than their own in order to get higher market valuations), I just don't agree with it.
A charitable interpretaion is that it's because they all got big and popular because they disrupted their respective markets with new technology. I'd agree with Tesla (legitimately new car technology) and Uber (lots of innovation behind the scenes to make it work), but not Robinhood. Airbnb is in there too and I think it's more questionable than Uber.
I'm no expert, but UBER with a current P/E of 11.7 is "cheaper" than 27 of the 30 Dow Jones Industrial stocks, and also well below the S&P500 long term historical average.
Comments
I don't understand why tesla (a car manufacturer), uber (a ride services company), robinhood (financial services), doordash (meal delivery service) are in the treemap of "tech market" companies. OK, I take that back, I understand why (i.e. good PR by those companies to be included in a sector other than their own in order to get higher market valuations), I just don't agree with it.
A charitable interpretaion is that it's because they all got big and popular because they disrupted their respective markets with new technology. I'd agree with Tesla (legitimately new car technology) and Uber (lots of innovation behind the scenes to make it work), but not Robinhood. Airbnb is in there too and I think it's more questionable than Uber.
I'm no expert, but UBER with a current P/E of 11.7 is "cheaper" than 27 of the 30 Dow Jones Industrial stocks, and also well below the S&P500 long term historical average.