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InfoSpace, Inc. Message Board

  • kg2931 kg2931 Nov 2, 2000 9:43 PM Flag

    INSP today's PE per Yahoo: "1146.88"

    I planned to buy today and didn't get in. Might try in the morning. However, something's really concerning me. Can someone give me an opinion on INSP's high PE. Yahoo has it as "1146.88" today!

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    • opinion on high p/e ... infospace just this last
      quarter became profitable over the trailing twelve month
      span, resulting in a somewhat high p/e. there are a
      couple of ways to look at this: first, it's a big, big
      step in the positive direction from having no p/e, a
      situation which many companies with a market cap (stock
      price x number of outstanding shares) higher than
      insp's are in. secondly, and most importantly, if you
      understand the infospace business model at all, you'd
      realize that this company is at the beginning stages of a
      growth cycle that will see it expand by more than 100%
      per year (conservatively speaking) for the next
      several years. With gross margins on the order of 85%,
      that p/e, over seceding quarters will begin to come
      down in leaps and bounds. this stock is not for the
      meek, but big, and potentially huge, gains never come
      without the associated risk. it gets tiring to see people
      continually bash this stock because of high p/e - simple
      solution - go get a guaranteed investment mutual fund,
      where you can get your lousy 6% a year.

    • Do not worry about it.---Their p/e must be refigured with new earnings report.---You should have bought last week when it was 17.---

    • Don't buy a stock if you don't understand the
      meaning of P/E's and when they are relevant. Market
      obviously looks forward and not backward. In addition, what
      good does it do to calculate a P/E on 2 cents of
      earnings? That would be like saying a company has 100%
      earnings growth when they go from 1 cent to 2 cents. It is
      meaningless. If you buy INSP you are buying because you
      believe in the future. NOt because of past earnings. Next
      year they are going to make 17 cents +. Does that mean
      their pe of 140 is too high? No. Future. Future.

      • 1 Reply to fernwell
      • Thanks the 1 - 2 cents example makes sense and
        does put PE in perspective for me. However, I've heard
        this potential Vs value arguement before and you can't
        tell me the overall market's correction lately isn't a
        result of this subject. Despite all that, let's look at
        INSP's extremely high PE of 1034.38 compared to the
        following. Doesn't INSP seem way out of balance in

        CISCO SYSTEMS 101.06
        NORTEL NETWORKS 136.51
        CORP 136.51
        QUALCOMM INC 82.54
        SYCAMORE NETWRKS 584.09
        PALM 535.63
        INFOSPACE 1034.38