Re:Amazon CEO Jeff Bezos sold more than $1B worth of stock t...
by tradersam on Friday November 03, 2017 @11:46PM
(#15623666)
> though I agree that because AMZN could probably simply 'turn on profit' at any time
I'm confused—Amazon is profitable already, no?
Re:Amazon CEO Jeff Bezos sold more than $1B worth of stock t...
by alexasmyths on Saturday November 04, 2017 @11:04AM
(#15625319)
They are barely profitable.
Massive revenue, tiny profit.
So, this makes their P/E ration quite massive and crazy as well.
Usually companies are based on the present value of all future earnings, kind of implying a P/E multiple of like 8 or 25 or whatever. Amazons is crazy high.
This is because it's assumed that Amazon could, at any time, start declaring massive profits, but they chose to re-invest instead.
Re:Amazon CEO Jeff Bezos sold more than $1B worth of stock t...
by stonemetal on Saturday November 04, 2017 @12:36AM
(#15623811)
They only became profitable recently, like 2016 time frame.
Amazon P/E is basically in the clouds.
They and Telsa in some ways are basically impossible to value.
So, people make difficult guesses.
Though I agree that because AMZN could probably simply 'turn on profit' at any time, and so the classical P/E is not a great measure ... at the same time ... a small dip in something could ruin them.
It only takes just a little bit of return to 'normal P/E' to wipe most of that out.
It's all emotion and intellectual pontification right now, and that's a crazy place to own a stock.