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The stock market is not "the economy". Ultimately AMZN's price will be reconciled with it's earnings. It's possible that future earnings will be affected by hig
by frankc 9y ago
The stock market is not "the economy". Ultimately AMZN's price will be reconciled with it's earnings. It's possible that future earnings will be affected by higher shipping costs, but if the USPS is being too generous (I have no idea) then everyone except AMZN is a winner if a better deal is negotiated.
- cma 9y ago> The stock market is not "the economy". No, but paper wealth has a huge effect on discretionary spending.
- candiodari 9y ago> Ultimately AMZN's price will be reconciled with it's earnings. I'm surprised no-one has called you out on this yet. Amazon's price to earnings multiple is currently 223.09 (after the 5% drop). Normal for companies is ~20, maybe 25. Bad companies usually run at 10 or so (usually meaning lots of debt, but no doubts about survival), Great companies run at double that, up to ~50. Amazon's price to earnings is ridiculous. Nope, Amazon's stock price is purely running on the reputation of the firm itself and of it's manager, Jeff Bezos. It is a huge exception in that regard. https://finance.yahoo.com/quote/AMZN?p=AMZN https://finance.yahoo.com/quote/AMZN?p=AMZN