They're still growing year-over-year. They were just off their target in the last quarter by 3%. They're valued at $3.67 per share versus the $3.78 expected. Their stock literally dropped ~25% because they were only 3% off expected earnings. And lost 0.15% active users, which is expected as the world opens up again. I don't see what the big deal is. The market is overreacting.
Post close trading can be swing by a lot. The reaction I think is not because that they are off by 3%, the future growth looks only to be pretty dull , perhaps also why FB is making such huge gamble on VR.
The high P/E big tech companies enjoy is on basis of the implicit expectation to keep growing fast[1], if that on confidence on growth is no longer there, then price will reflect closer to a more traditional tech stock.
Tesla trades at P/E of 185x, Amazon - 58x, Microsoft - 35x, Google - 29x and FB - 23x[2]. I think it accurately reflects the market expectation of their respective future growth.
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[1] Same reason Tesla is valued so high despite relatively modest revenue, the expectation is massive growth on the back of their lead in the space and the accelerating shift towards EV.
[2] SAP, IBM, ORCL all trade in the same range today.
