"Contrast the pipeline stock with Netflix (NFLX), an exciting but volatile play whose stock appears to be on flimsier ground despite a lightning-quick run-up lately. CNN Money's Paul La Monica "wont back down" from his view that the stock, at 160 times earnings estimates, is quite overvalued and "not sustainable."
Indeed, one look at this company's recent ascent and it's hard not to be skeptical. "
Coupled with creative bookkeeping that has deferred actual current costs to later years, and you have even worse ratios. It's overpriced using the current numbers, it's ultra super over priced when you apply standard accounting. This is a game of chicken to see who is going to flintch first, could go higer in the process, but one day it's just going to collapse as everyone tries to beat every other person out of the building.
The exception would be if someone like AAPL buys NFLX, something I'd like to see AAPL do...