What will probably happen

• Expanding multiples on an already-expensive stock implies the market expects earnings acceleration — any miss triggers sharp compression.
• Modest income yield provides a partial floor while waiting for valuation normalisation.

What to do

If you HOLD this stock

You're long expensive multiples that are still expanding — implies the market is pricing in continued growth acceleration. Any disappointment compresses sharply. Hold but trim if the next 2 quarters miss.

If you're EVALUATING this stock

Pass unless your conviction on growth durability is high. Expanding multiples already price in the bull case — you're paying for a scenario that hasn't happened yet.

If you trade OPTIONS

Sell premium against shares (covered calls); IV likely elevated. Avoid long calls — multiple compression risk dominates if growth disappoints. Bear call spreads hedge the downside.