4 ms·

Took Amazon 25 years to go from a $0 market cap to a $1T market cap. Took Amazon 2 years to go from $1T market cap to $2T market cap. Took Amazon like 6 months

by bradhe 4y ago

Took Amazon 25 years to go from a $0 market cap to a $1T market cap. Took Amazon 2 years to go from $1T market cap to $2T market cap. Took Amazon like 6 months to go from $2T market cap back to $1T market cap. Totally healthy economics.

crazygringo 4y ago
Unsure what you mean. That's how exponential growth works, and then that's how market downturns work, combined with economic uncertainty of COVID. Don't see what's "unhealthy" or even out of the ordinary about it.
- mrbigbob 4y ago
  There decline has nothing to do with COVID. They reaped in a quite a large sum of money during COVID, especially when a great deal were staying at home and they didnt want to or couldnt go to a local store
Spivak 4y ago
Eh Amazon’s P/E has settled down since the wildness of 2014-2016 so this isn’t the market being crazy, Amazon really does have the earnings to back it up.
- revskill 4y ago
  "healthy" means there should be no up nor down, should be linear valuation.
- mstipetic 4y ago
  Does it pay dividends? Or plan to pay?
  - mrep 4y ago
    They've announced stock buybacks which are practically the same thing: https://www.cnbc.com/2022/03/09/amazon-announces-20-for-1-stock-split-10-billion-buyback.html https://www.cnbc.com/2022/03/09/amazon-announces-20-for-1-st...
- pokerhobo 4y ago
  AMZN is completely propped up by AWS and AWS growth is slowing.
ren_engineer 4y ago
>Fortune is of sluggish growth, but ruin is rapid https://en.wikipedia.org/wiki/Seneca_effect https://en.wikipedia.org/wiki/Seneca_effect
sleton38234234 4y ago
i suspect a lot of the super high PEs we're seeing has to do with the tendency to prefer capital gains over dividends, due to regulations incentivizing this.
- mrep 4y ago
  Qualified dividends are taxed at the same rate as cap gains: https://www.fidelity.com/tax-information/tax-topics/qualified-dividends#:~:text=Qualified%20dividends%20are%20generally%20dividends,known%20as%20a%20holding%20period https://www.fidelity.com/tax-information/tax-topics/qualifie....
  - fomine3 4y ago
    Does it work for corp/foreign shareholders?

by bradhe 4y ago

crazygringo 4y ago

Unsure what you mean. That's how exponential growth works, and then that's how market downturns work, combined with economic uncertainty of COVID. Don't see what's "unhealthy" or even out of the ordinary about it.

mrbigbob 4y ago
There decline has nothing to do with COVID. They reaped in a quite a large sum of money during COVID, especially when a great deal were staying at home and they didnt want to or couldnt go to a local store

Spivak 4y ago

Eh Amazon’s P/E has settled down since the wildness of 2014-2016 so this isn’t the market being crazy, Amazon really does have the earnings to back it up.

revskill 4y ago
"healthy" means there should be no up nor down, should be linear valuation.
mstipetic 4y ago
Does it pay dividends? Or plan to pay?
- mrep 4y ago
  They've announced stock buybacks which are practically the same thing: https://www.cnbc.com/2022/03/09/amazon-announces-20-for-1-stock-split-10-billion-buyback.html https://www.cnbc.com/2022/03/09/amazon-announces-20-for-1-st...
pokerhobo 4y ago
AMZN is completely propped up by AWS and AWS growth is slowing.

ren_engineer 4y ago

>Fortune is of sluggish growth, but ruin is rapid https://en.wikipedia.org/wiki/Seneca_effect https://en.wikipedia.org/wiki/Seneca_effect

sleton38234234 4y ago

i suspect a lot of the super high PEs we're seeing has to do with the tendency to prefer capital gains over dividends, due to regulations incentivizing this.

mrep 4y ago
Qualified dividends are taxed at the same rate as cap gains: https://www.fidelity.com/tax-information/tax-topics/qualified-dividends#:~:text=Qualified%20dividends%20are%20generally%20dividends,known%20as%20a%20holding%20period https://www.fidelity.com/tax-information/tax-topics/qualifie....
- fomine3 4y ago
  Does it work for corp/foreign shareholders?