I remember reading a story in a best-selling book from Investors Business Daily. Some guy stormed in, said Xerox was had an outrageous P/E and so he shorted on that basis alone. The stock continued to rise and the P/E went through the roof, the sucker lost big time.
EA is very cheap at only a 700 P/E. At a P/E of 2000 it will be fairly priced. Good luck shorts.
EA is not cheap, and is near the high end of most all analysts price range.
Ea is expected to grow at half the pace of the computer-software category over the next year, and 30% slower than the category over the next five years. Yet its P/E is triple the categories. Thats without even mentioning the economic downturn that has taken place.
"EA is not cheap, and is near the high end of most all analysts price range."
An analyst just reiterated strong buy and upgraded price target to $70 today. Sorry, but fundamentals simply do not matter to EA investors. The analysts are pumping, and who knows when they will decide to dump? Could be months...