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Re:AMD Returns to Full-Year Profitability, Forecasts Strong ... by m3kw9 on Wednesday January 31, 2018 @02:56PM (#16276995)
Their P/E is now over 340. I’m not sure if that’s new territory do a stock that is not penny? Or is it because they just became earnings positive?
Re:AMD Returns to Full-Year Profitability, Forecasts Strong ... by jnordwick on Wednesday January 31, 2018 @03:11PM (#16277103)
Prob. PER is only really useful for a firm with a stable and positive net income (think of things like industrials where growth capex isn't such a major factor). For something like a firm fluttering around zero EPS you would use a more forward measure of expected profit. The problem with PER is that stock price is forward looking while EPS is backwards looking.
Re:AMD Returns to Full-Year Profitability, Forecasts Strong ... by aoeusnth1 on Wednesday January 31, 2018 @03:06PM (#16277068)
https://finance.yahoo.com/quote/amzn/

Not new territory at all. P/E is not a good indicator of future earnings, because it artificially penalizes capital investments. Cost of revenue is a better metric.