Q: Hello, I have a technical question. I read recently (Motley Fool) that: At 74.4 times earnings, SHOP is arguably more expensive than NVIDIA.
As I'm fairly new to investing, why would the 74.4 times earnings make a stock expensive? What does that actually mean? And if you could add any other thoughts on Shopify as it stands now, that would also be appreciated. Thank you.
As I'm fairly new to investing, why would the 74.4 times earnings make a stock expensive? What does that actually mean? And if you could add any other thoughts on Shopify as it stands now, that would also be appreciated. Thank you.
5i Research Answer:
Equity investors typically use multiples like forward price-to-earnings to justify the current...
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in NVDA.