I know there's a few serious traders here: CRM, wtf?

[SmoothTalker]

So, just wondering am I crazy, or is this thing just insane?

270 P/E ratio, > 100 Forward P/E, sketchy accounting practices, a CEO that sells literally every day, a market that's now being entered by heavyweights like Oracle and Microsoft, and it just keeps going up and up and up.

Aside from 'irrational exuberance', an anybody offer any sort of realistic justification here?

 

[Bible_Belt]

p/e ratios are irrelevant with high-flying tech stocks...at least on the way up. It has always been that way with tech stocks especially. Yes, it is exuberance over reality, but the only true reality is the current share price.

 

[SmoothTalker]

Yes, of course it's P/E compared to growth we should be looking at. But their growth has been less than spectacular already (and revenue isn't being pushed through to earnings) and that was with almost no competition.

Oh well, waiting on the sidelines for a while.

 

[Julius_Seizeher]

Might be a good time to short it

 

[macallik]

Might be a good time to short it

Heavy volume on the sell off today. Down 5%.

I would short it on a break below 135 and cover if it fights back above that area. Looks like high reward and low risk because of its initial gap higher after beating its Earnings Report in November. I think it can go to 120 relatively easy.

 

[SmoothTalker]

I can't short due to Canadian legal limitations on trading within a tax free account, but I did make a small profit from CRM puts today.

Would have been a massive profit had I timed it right, but I was early and overpaid for the options and lost a lot waiting for the drop.

Still, seems like the momentum has changed for now at least.