When I'm screening for interesting stocks, I notice so many of them don't have a PE. They simply don't make any money on the belief that in time they will grow. There also seems to be a big emphasis on increasing revenues quarter to quarter. And yet even where these companies revenues are increasing they are still unable to turn a profit or even worse, their deficits are increasing.
I believe with rising interest rates and the free money fountains being turned off, we're going to reach a place very quickly and probably next year where cash flow and income matters. Some of these stocks are already down 30+% and imo if companies can't show profits soon they could be in trouble.
What do you guys think. Is this something new or will we look back at companies with triple digit PEs and think 'what the hell was that'.
I just don't get how so many companies get to the sizes they do without ever showing profit. If you own a tiny corner shop you have to turn profit and yet here's companies with market caps in the billions that can't. And it seems they're just living off equity and debt until the clock runs out.
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