PE isn't the correct metric here but EV/ebit or EV/ebidta or EV/sales. They have a lot of debt. I am long though. There was a big put sale at 50$ so mildly bullish.
Im long on TRI stock. Current levels have reset to prices 5 years ago. Forward PE at 20x when it was 25x even before AI.
Their customers are legal firms which are rolling in cash. The worry is Anthropic AI will replace their legal research subscription product but this doesn’t seem realistic. The company would just use anthropic like cursor does for code in the worst case and move people cost of data curation to anthropic APIs
I believe the drop is from the spook that while Rev is increasing opx/capx cost is increasing which erode margins. I believe it’s temporary. AI is commodity on scale of 2-3 years
50 reasons. Mostly because good earnings have been reported in a majority of companies reporting recently. profit growth is 13%on average for companies that have reported. Forward pe for s&p is down to 21 now, when last 5 years was 20.
And companies are spending $600b on infrastructure and 90% of it is cash from operations.
I think you need to get your head out of doomer world and read a report or two.
Well good luck OP. Hope you print but you should know they have negative 150 PE. It’s a decent big stock which holds good levels but it’s already in downtrend while market is at ATH. While it reclaimed daily 50ema it’s still like 30$ from highs. I would by that only after spy goes down at least 10-20%. Also they are overhyped same as drone stonks. For people who gonna say they have gazillion clients in the future locked up via existing partnerships with major careers - AMZN has gazillion of clients and they still at the same price from 2024 despite actually having p/e.
So if market is not rewarding stocks with earnings how can you hope it will reward stocks with none?