P/E Ratio

Many of the stocks that have truly given investors amazing returns never had P/Es greater than 50. MSFT or Dell didn't have outrageous multiples; these companies delivered solid earnings over several years. This provided investors with larger returns than Google's recent gains. For this stocks ratio to go down to 20, it would have to earn $18 per share. This would mean it would have to earn around $5 billion dollars per year. So currently, the stock price reflects a company that is expected to earn this much and more. A stock at this valuation has a high downside risk with these expectations