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I don't think you understood the OP's point correctly - their forward P/E, aka what earnings the investors expect the company to make in the future, is abnormal
by mbesto 12y ago
I don't think you understood the OP's point correctly - their forward P/E, aka what earnings the investors expect the company to make in the future, is abnormally high, thus indicating investors are still quite bullish.
- ericglyman 12y agoI understood it. Forward P/E is typically next year's P/E. Investors expect nearly $100B in revenue, but almost no earnings (1/366th). Because the denominator is expected to be SO small (against such large earnings), the forward P/E ratio will also be ridiculous and not very meaningful. No denying that many Amazon investors are bullish, but this is not the metric to prove that point. Other relevant drivers at play.