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What: Shares of cloud computing specialist NetSuite
So what: Like a Tour de France biker drafting off of another racer, it seems that NetSuite may be getting a boost from fellow cloud-rider salesforce.com
Now what: Investing in stocks that have high valuation multiples is sort of like base jumping to me: There are plenty of people who think it's an exciting and worthwhile thing to do (and some of those people have done quite well with it), but it has always struck me as a bit too dangerous. Like salesforce.com, NetSuite's stock carries some sky-high valuation multiples that -- even though growth is expected to be robust -- I have trouble making sense of.
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