When RDDT was 145 it caught my eye as a potential buy but didn't quite fit the profile of companies I go for (usually buy sub 30 PE companies unless crazy high earnings/revenue growth). RDDT at the time was at a low 30 PE and despite looking attractive I decided it still wasn't cheap enough to warrant a position. The problem I see investing in growth stocks with high PEs was perfectly exemplified today with RDDT along with another slew of names: Mr. Market assigns a high multiple based on ACCELERATING growth. The minute a company shows any signs of decelerating growth, Mr. Market punishes the stock and the PE multiple compresses. Case in point today. RDDTs quarter by the #s: - Revenue growth of 53% YoY - Gross Margins 91.5% By all accounts these are amazing #s and after today's massive overreaction, the stock trades at an 18PE... An absurdly low multiple for a company with that growth (and still projected to grow 30-40% within the coming year). The business is low debt, high margins, fast growing and yet the people saying it was good value at $145 are the same ones selling out at $91. Make it make sense.... Whats everyone's thoughts on this one? Me personally, I finally decided to pull the trigger and I'm buying shares sub 100 all day   submitted by   /u/silver-bullet007   to   r/GrowthStockInvesting [link]   [comments]