AMAZON is garbage
I just read a reply on the bear pitch for this stock.
What this constant garbage about look at a stock from how many times revenue it is trading? Seriously, this is the most useless and silly metric to base valuation on. It could be trading a 0.2 times revenue, but it is meaningless unless the profitability is factored in. A company trading at 0.2 times revenue is worth little if they can't generate a profit from it.
Amazon is trading at almost 100 times its earnings. It means that its return on market cap is in the range of 1%. That is scary, scary, scary run from it like your life depends on it financial scary in terms of how much growth the company needs to justify its market cap.
A $35 billion dollar market cap business is NOT easy to grow, yet this company needs at least 5x its earnings to justify its market cap.
What is a reasonable expectation for growth? 5% per year? 10% per year? 20% per year. Certainly the latter is beyond optimistic and at 20% growth per year to bring this P/E down to about 20, would take 6 years. At 10% growth it would take about TWENTY years. A market saturated business has a hope of growing at 10% per year, NOT LIKELY...
AMAZON is a $15-20 stock AT BEST.