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Citation? There seem to be cases in high technology where the market is very patient for long term returns. Case in point: AMZN trades at a 320 P/E because the

Citation? There seem to be cases in high technology where the market is very patient for long term returns. Case in point: AMZN trades at a 320 P/E because the market (thus far correctly) can’t see a plausible scenario in which it cedes any e-commerce or AWS share. Maybe this is optimism bias writ large? Another possibility is that even if there is robust demand despite certain destruction, these houses are really worth many millions for the short term (for cachet, status, etc.). Here we model them as really expensive vacations.

TheOtherHobbes 8y ago
Ten years is not the long term.
nabla9 8y ago
> very patient for long term returns. High P/E in the case of AMZN is not measure of long term. It's measure fo fast expected growth, low interest rates, shadow margins, and general short therm overconfidence. It took 10 years for AMZN stock to recover from the peak of 1999 crash. There was nothing wrong with the company, markets just didn't want to wait.