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How can anyone justify in a P/E ratio of > 250 is beyond me. Math and logic seem both out the window. For investors who want to invest on the scale of decades -
by itissid 9y ago
How can anyone justify in a P/E ratio of > 250 is beyond me. Math and logic seem both out the window. For investors who want to invest on the scale of decades - like you and I- this will become either a cautionary tale or the greatest returns on an ecommerce stock - ever(Only by then it will be much more than ecommerce).
- Veelox 9y agoIt is because Amazon purposefully depressing the earnings part of P/E by outlaying massive amounts into capex and R&D. They have a gross profit of ~$66b but a operating income of ~$4b. If they halved their operating expenses that ~$4b becomes ~$34b and the P/E becomes ~30 which is much more reasonable.
- deleted 9y ago[deleted]