I am lookin at the financials and current market cap is like $42.5 billion. meanwhile ttm revenue is literally $18M. that puts the p/s ratio at over 2000x. i know markets are forward looking and space is huge, but pricing in that much perfection seems kinda insane to me. even if they scale massively in the next couple years, the stock price right now ($115) feels like it has zero margin of safety.
Also the insider selling is worrying me. american tower sold huge recently ($150m+ in stock) and i saw a few execs (coo/cto) dumping shares too over the last month. usually if a company is about to moon on a massive contract, insiders hold, they dont sell into the rally. feels like they are takin advantage of the hype to get out.
Analysts are mostly lower too. scotiabank is at $45 and b. riley just downgraded to neutral with a $105 target. stock is tradin way above even the optimistic targets.
Technicals look super overheated (rsi near 70) and it just jumped 14% on the news. feels like a classic "buy rumor sell news" setup where it dips back down once the hype wears off.
Not shorting cuz momentum is scary, but i cant justify buying here, wondering what is the right buy-in price. anyone else feelin like this is a massive bubble, bigger than AI, waiting to pop, or is there something about the defense contract that justifies a 40b+ valuation right now?
Thoughts?
https://preview.redd.it/ldr7g8ysyheg1.png?width=672&format=png&auto=webp&s=31899197952668370ad06f75642d0475fa8f81f4