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A comment on Amazon CEO Jeff Bezos sold more than $1B worth of stock this week. Parent comment

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?

[ Parent | on HN ]
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.

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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.
[ Parent | on HN ]