If you remember the whole thing at the time of the Dot.com hype around the millennium, you are correct. Even then, analysts have increasingly higher price targets for shares "ABC.com" even with the higher valuation of "XYZ.com" justified or unjustified. The end of the story is well known!
For all the euphoria partly justified MakeMyTrip.com investors should not buy more at current levels, therefore. Even the greatest companies with all the hottest growth prospects in the most promising sector of a rapidly growing emerging market may be overvalued.
This applies to MakeMyTrip.com and similarly for Ctrip.com. What fate threatens investors, if you pay too much for a good company, shows an example of a German internet company of the new generation: XING AG.
Launched in December 2006 against the backdrop of the then hype surrounding professional networking, shot from the stock issue price at 30 € in the lead up to a high of 51 euros. This has reached the stock despite a satisfactory business since then never again. Since the beginning of the stock moved in a range 26-32 €. Downward trend!
For all the euphoria partly justified MakeMyTrip.com investors should not buy more at current levels, therefore. Even the greatest companies with all the hottest growth prospects in the most promising sector of a rapidly growing emerging market may be overvalued.
This applies to MakeMyTrip.com and similarly for Ctrip.com. What fate threatens investors, if you pay too much for a good company, shows an example of a German internet company of the new generation: XING AG.
Launched in December 2006 against the backdrop of the then hype surrounding professional networking, shot from the stock issue price at 30 € in the lead up to a high of 51 euros. This has reached the stock despite a satisfactory business since then never again. Since the beginning of the stock moved in a range 26-32 €. Downward trend!
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