It does almost exactly the opposite of what you think it should. It feels like too late to go long, but look at all the stocks that got to 500 and kept on going, some in 4 figures. I've been trying some puts here and there, but I think it's time to join the bandwagon and cheer it up to 500.
NFLX amazes longs and shorts alike. While it's been a long's delight for months/years, it can also drop like a rock quickly. I don't think it will ever see 1000, but I didn't see Priceline over $1k until it went warp speed out of this average retail trader's solar system.
You do realize that 1996 was almost 20 years ago. If it's a 50 year bull market, for whatever reasons, why would you want to miss it? The infrequent storms or corrections seem worth the risk - it's always come back, and then some.
It is crazy...and I think that's the point. But since the country and markets have been thru far worse, I guess the PTB thinks we'll get thru it OK. Meantime, it's like being at a party and not having a good time surrounded by drunk folk who seem pretty happy with their decision to party like it's 1999 again. That said, the Artist formerly known as Prince was right!?
But it works just about every time for momo stocks...shorts just fuel the fire thinking gravity plays a role when you're in high orbit. It could be worth $300 in 2013 dollars, and who is to say it's not worth more in 2020 dollars? Only the people and robots buying, and so far, things are looking UP for NFLX based on market value... it's supposed to win according to the investors...it has to win. Therefore, Cramer is correct and just saying what's true about any stock that has a PE over 1 (even if 15-20 is historic norm).