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A comment on Is Amazon’s Stock Price Justified? What It Means If It Is (2017). Parent comment

Re:Is Amazon’s Stock Price Justified? What It Means If It Is... by lumost on Saturday July 10, 2021 @12:26PM (#27794499)
A 0% interest rate implies that this is a good bet on an unlimited time horizon, a theoretical investor could borrow from the fed and use the money to purchase any profitable company at any price and earn a return eventually.

The only bound is how much money can be borrowed at an interest rate lower than the future expected free cash flow of the business.

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Re:Is Amazon’s Stock Price Justified? What It Means If It Is... by cs702 on Saturday July 10, 2021 @03:33PM (#27795837)
Only short-term rates are close enough to 0%. Are you talking about borrowing short-term at 0% to invest with an unlimited horizon, exposing yourself to massive interest-rate risk?
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