I might disagree that they “do not make nice enterprise.”
Clearly it is dependent upon what metric you employ to guage what an excellent enterprise is, however let’s use ROE for the sake of argument.
AAPL is top-10 within the S&P500 for ROE. MSFT is within the high 20%. NFLX is within the high 100. GOOGL is juuuuust shy of high 100. FB simply shy of high 25%. AMZN is high 30%
The issue is that the valuations have been unhealthy, not that the businesses themselves are unhealthy.
Netflix’s TTM income curve is pristine over 12 years. TTM EBITDA curve is pristine. The issue is ahead expectations. Any affordable individual might see that there was going to be a saturation level. Anticipating these curves to stay pristine in perpetuity was merely unreasonable, and right here we’re: everybody nonetheless on the hype practice simply took a trip over a cliff.
