3 ms·
All of this is entirely dependent on whimsy. Amazon P/E is basically in the clouds. They and Telsa in some ways are basically impossible to value. So, people
by alexasmyths 9y ago
All of this is entirely dependent on whimsy.
Amazon P/E is basically in the clouds.
They and Telsa in some ways are basically impossible to value.
So, people make difficult guesses.
Though I agree that because AMZN could probably simply 'turn on profit' at any time, and so the classical P/E is not a great measure ... at the same time ... a small dip in something could ruin them.
It only takes just a little bit of return to 'normal P/E' to wipe most of that out.
It's all emotion and intellectual pontification right now, and that's a crazy place to own a stock.
- tradersam 9y ago> though I agree that because AMZN could probably simply 'turn on profit' at any time I'm confused—Amazon is profitable already, no?
- stonemetal 9y agoThey only became profitable recently, like 2016 time frame.
- alexasmyths 9y agoThey are barely profitable. Massive revenue, tiny profit. So, this makes their P/E ration quite massive and crazy as well. Usually companies are based on the present value of all future earnings, kind of implying a P/E multiple of like 8 or 25 or whatever. Amazons is crazy high. This is because it's assumed that Amazon could, at any time, start declaring massive profits, but they chose to re-invest instead.