- Growth is spiking at MPS, pushing the stock upwards and driving multiples far in excess of what competitors go for.
- MPS and its stock are outperforming and way above their trend lines, at a time when there are questions about the quality of its growth.
- Trade tensions, semiconductor shortages and COVID-19 supply chain disruptions may have skewed the numbers and real demand could be weaker than assumed.
- The more the stock rises due to increased earnings from growing demand, the greater the risk if it turns out that real demand is less than believed.
For further details see:
Why Earnings And Risks Are Rising Simultaneously At Monolithic Power Systems