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> though I agree that because AMZN could probably simply 'turn on profit' at any time I'm confused—Amazon is profitable already, no?
by 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.