The most shocking thing I’ve learned about this is Google is referred to as Alphabet. Has it always been that?
Lmao at Tesla – what a meme stock
Single moment-in-time snapshots don’t tell a story. AMZN, for example, was over 1000x P/E in 2013
Try adding the path lines that show how how each point got to where it is now.
Edit: I updated the P/E ratio of Amazon to reflect new earnings. However, I noticed I embarrassingly forgot to subtract 100% in calculating the earnings growth. Here is [a fixed plot](https://i.imgur.com/j8LUArR.png).
This really needs to normalize the size of the corporate logos. I couldn’t understand why the X-axis was so huge until I found the tiny Tesla datapoint down by the dense context text.
I’m assuming the point of this chart is to highlight how ridiculous Tesla stock is rn, but almost every part of this graph design acts to obscure it.
Saying a lower P/E is better is a bit of an oversimplification isn’t it? The metric is also an indicator of growth expectations the market has for the stock. There’s nuance to it.
If you need to add text at the bottom to explain data and design decisions, it’s not beautiful. And you don’t have to say Higher/lower is better. Scaling the logos with the profit margin is a terrible design because the logos themselves are all different and negative profit margins exist. Finally, the earnings growth should be forward looking, it’s useless to compare PE with trailing EPS growth.
![[OC] Magnificent 7 - Valuation, Growth, and Margins](https://www.europesays.com/wp-content/uploads/2025/02/gu2j62r55lhe1-1920x1024.png)
7 comments
The most shocking thing I’ve learned about this is Google is referred to as Alphabet. Has it always been that?
Lmao at Tesla – what a meme stock
Single moment-in-time snapshots don’t tell a story. AMZN, for example, was over 1000x P/E in 2013
Try adding the path lines that show how how each point got to where it is now.
Edit: I updated the P/E ratio of Amazon to reflect new earnings. However, I noticed I embarrassingly forgot to subtract 100% in calculating the earnings growth. Here is [a fixed plot](https://i.imgur.com/j8LUArR.png).
This really needs to normalize the size of the corporate logos. I couldn’t understand why the X-axis was so huge until I found the tiny Tesla datapoint down by the dense context text.
I’m assuming the point of this chart is to highlight how ridiculous Tesla stock is rn, but almost every part of this graph design acts to obscure it.
Saying a lower P/E is better is a bit of an oversimplification isn’t it? The metric is also an indicator of growth expectations the market has for the stock. There’s nuance to it.
If you need to add text at the bottom to explain data and design decisions, it’s not beautiful. And you don’t have to say Higher/lower is better. Scaling the logos with the profit margin is a terrible design because the logos themselves are all different and negative profit margins exist. Finally, the earnings growth should be forward looking, it’s useless to compare PE with trailing EPS growth.
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