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Stock market bubble warnings are everywhere. These are the 10 most richly valued stocks right now.


Stock Market Bubble

Johannes Eisele/AFP via Getty Images

  • As the stock market hits record highs, some investors are concerned about a bubble.

  • High valuations and an AI-hype cycle are the top concerns for bearish investors.

  • From AI to chicken wings, listed below are the 10 most richly valued stocks in the market right now.


Record highs in the stock market and growing hype around artificial intelligence are leading some investors to worry about a potential bubble.

Valuations are stretched, crypto is booming, and to some investors, it feels like the more than 25% gain in the S&P 500 since late October is too far too fast.

Economist David Rosenberg highlighted three glaring divergences in the stock market earlier this month that suggest a downturn is inevitable, and Warren Buffett’s favorite valuation signal is nearing records, suggesting that stocks are richly valued.

When looking at individual stocks, it’s not only AI stocks that are surging higher. Everything from chicken wing restaurants to biotech companies are hitting valuations that look unsustainable in the long-term.

These are the 10 most richly valued stocks in the market right now that have a market valuation of at least $10 billion, based on their price-to-sales ratio.

10. Trade Desk

the trade desk

The Trade Desk/Twitter

Ticker: TTD
Price-to-sales ratio: 22.0x
Market value: $42.7 billion

9. Palantir

Palantir

Arnd Wiegmann/Reuters

Ticker: PLTR
Price-to-sales ratio: 22.9x
Market value: $50.9 billion

8. Wingstop

UKRAINE - 2021/06/21: In this photo illustration a Wingstop logo of an US chain of restaurants is seen on a smartphone screen with a Wingstop menu in the background. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)

Wingstop logo of an US chainSOPA Images / Getty Images

Ticker: WING
Price-to-sales ratio: 23.4x
Market value: $10.8 billion

7. Cloudfare

Cloudflare CEO Matthew Prince

Cloudflare CEO Matthew PrinceMike Blake/Reuters

Ticker: NET
Price-to-sales ratio: 25.2x
Market value: $32.7 billion

6. Crowdstrike

Crowdstrike logo

Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images

Ticker: CRWD
Price-to-sales ratio: 25.4x
Market value: $77.5 billion

5. Legend Biotech

Legend biotech

Legend Biotech

Ticker: LEGN
Price-to-sales ratio: 35.8x
Market value: $10.2 billion

4. Nvidia

A laptop keyboard, a binary code reflected and Nvidia logo displayed on a phone screen are seen in this illustration photo taken in Krakow

NurPhoto / Getty

Ticker: NVDA
Price-to-sales ratio: 37.1x
Market value: $2.26 trillion

3. Arm Holdings

Arm Holdings CEO Rene Haas

Arm Holdings CEO Rene HaasMichael M. Santiago/Getty Images

Ticker: ARM
Price-to-sales ratio: 43.7x
Market value: $128.5 billion

2. MicroStrategy

Michael Saylor, CEO of MicroStrategy

Michael Saylor, CEO of MicroStrategyJoe Raedle/Getty Images

Ticker: MSTR
Price-to-sales ratio: 58.3x
Market value: $28.9 billion

1. Astera Labs

Astera Labs

Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images

Ticker: ALAB
Price-to-sales ratio: 97.7x
Market value: $11.3 billion

Read the original article on Business Insider



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