6 ms·
In my eye, ebooks are the big driver here. The core market for the Kindle is older, wealthier individuals (read: investors) and sales revenue from ebooks rose 1
by cjlars 16y ago
In my eye, ebooks are the big driver here. The core market for the Kindle is older, wealthier individuals (read: investors) and sales revenue from ebooks rose 173% last year, Amazon sells more Kindle books than physical books and so on. It's all pretty impressive to the casual investor, who can feel like he's making a good bet on the 'future of reading'. Even Barnes & Noble, who is shackled by it's physical stores and has falling profits is trading at a generous 23.5 P/E today. I'm passing on AMZN for sure.
- zhyder 16y ago"has falling profits (and) is trading at a generous 23.5 P/E today" 23.5 is not generous at all if the denominator is tiny (coz of the falling profits). P/E is actually pretty meaningless when E is small coz of low margins [1], since small transient changes in margins (e.g. .1% to 5%) can make P/E vary wildly. And it's even more meaningless when E is negative. [1] The exception being when the low margins are steady, and hence predictable.