They are in a great position to generate a lot of value without rising prices, they haven't realized it yet because what they have to do is pretty boring.
replyBusinesses tend to choose them because they're cheaper than alternatives.
replyI think about investing in Cloudflare but that P/E ratio scares me off every time.
replyTheir revenue is growing 30% yoy, so investors are speculating it to pay off in the end.
replyThey don't have a PE ratio. They have never made a profit.
replyNaN is scary
replyPE ratio too high!
replySir, that is price/revenue ratio
(jawdrop)
Oh less than Atlassian. Suprised.
replyAtlassian has a moat of features despite being expensive. You see nibbles by stuff like Monday.com but never big chunks.
replyCloudFlare is honestly still iterating to find a moat other than 'really cheap'.
High P/E means a good moat.
(Too high and everyone is looking for a start-up to eradicate your product segment of course).