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Their PE ratio is 300. That's not profit that's wishful thinking. I will be amazed if they ever get to 100. Today prices are based entirely on dreams. Sure some

Their PE ratio is 300. That's not profit that's wishful thinking. I will be amazed if they ever get to 100. Today prices are based entirely on dreams. Sure someday they might make lots of money. Apple makes more profit every few days. With AWS they would have nothing.

yomly 10y ago
>With[out] AWS This is such a moot point. That Amazon a "retail" company was able to roll out Kindle and popularise E readers (while handling distribution)... That Amazon were able to roll out AWS, a highly profitable cloud platform... That Amazon are in the process of launching automated drone delivery... These facts are not coincidence, they are inextricable from Amazon being what it is - a tech company that happened to start with Retail as its cash cow. It's an innovative company that is not content sitting around getting fat the second it reaches some sort of comfort zone, and until running a company like this becomes the norm, they can afford to command higher PE ratios while people anticipate their next big blockbuster product. To compare Amazon to Walmart, a company whose be all and end all is Retail, is missing the bigger picture. (nb that's not to say that their current trading ratio isn't overinflated)
- brianwawok 10y ago
  Except Walmart has Walmart labs so they are at least a tiny bit tech :)
dreaminvm 10y ago
People were also skeptical about Facebook turning a profit and have a PE less than 100. Now Facebook is literally printing 2B per quarter with a more sane PE (~60) as growth continues to accelerate. Only time will tell, but if Amazon continues bring users into their Prime ecosystem and AWS maintains its position, there's plenty of room to increase profits.