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That P/E explains why I wouldn't buy Amazon stock either. It's a strong company, but that is a ridiculous P/E.
by adamc 14y ago
That P/E explains why I wouldn't buy Amazon stock either. It's a strong company, but that is a ridiculous P/E.
- pja 14y agoP/E only carries meaning for stable companies that aren't growing. If a company is investing for the long term, then their P/E might look terrible but they may be laying a base for huge profits in the future. Of course they might also be throwing money into a hole in the ground, but looking at the P/E ratio isn't going to tell you which of those are going on. NB. Amazon's razor thin profit margins are what would worry me if I had a pile of AMZN stock, not their P/E ratio.
- rorrr 14y ago"Why Amazon May Be Worth 179 Times Earnings" http://contrarianedge.com/2012/07/26/valuex-vail-2012-thoughts-part-1-why-amazon-may-be-worth-179-times-earnings/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+ContrarianEdge+%28Vitaliy%27s+ContrarianEdge%29 http://contrarianedge.com/2012/07/26/valuex-vail-2012-though...