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There are companies in the tech bubble right now that are worth much more than 100 times current profits. Best example, is LinkedIn... LNKD's P/E is over _700_ ...
It's all future gambling. Or rather, these bubbles are not about multiple, they are about the fact that a ton of people want in. At $38 it's easy to buy a share, or two and be part of it. This is what will drive the price up. Then, when major chunks are sold, we'll see a drop, and after that it will rise again...
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"Think about it a little more and you'll agree with me, because you're smart and I'm right."
- Charlie Munger
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