Overvalued
$Futu Holdings Ltd(FUTU.US$ There is something very strange with this stock. They have pumped it huge and is way overvalued. Is this the meme stock now?
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beedeebee : if this is overvalued, I dunno what to say about US companies
Andrew GlassOP beedeebee: Yes a lot of US companies are overvalued I agree. But compare this to its competitors… like Robinhood. It is way overvalued.
luxcan Andrew GlassOP: But robinhood is still making losses compared to Futu who is profitable with a PE ratio less than 20
Chase21 Andrew GlassOP: What is the metric you’re using that this Futu is overvalued against robinhood? Not disagreeing, just wanted to understand.
Andrew GlassOP Chase21: Looking the the forward PE ratio. This is now at 20 PE. Pretty steep for a brokerage company.
Chase21 Andrew GlassOP: Their p/e is around 15, but Hood is at a loss. IBKR close to 19 but obviously more mature company growing low to mid single digits, futu growing 25% over the next few years. I don’t have a position in them but know the company and financials pretty well. Used to have a large position from 2020, rode them to 200+ from high 20s, sold half a 150-160 and sold the other half in the 40s as I couldn’t deal with the volatility of Chinese stocks. My non professional advice, don’t blow your account shorting this on an upswing. very rare for Chinese stocks to be overvalued. Don’t be another Bill Hwang. Obviously, don’t be me either and hold it for way too long.