AMZN is too big for its PE Ratio
Nothing wrong with companies with massive or even negative PE ratios.
But for AMZN it is. At its ATH Amazon was worth about $500 billion. Think about that.
At $500 billion what is the chance of Amazon doubling or tripling in the near future? Very low. No way Amazon reaches $1.5 trillion to $2.0 trillion.
So what does it mean? Its 250 PE is not justified. Companies with massive PE's like that usually have massive growth potential. Like a company that is worth $2 billion that could easily double or triple.
AMZN doubling or tripling is basically impossible because it is already so massive.
Posted Aug 17, 2017, 8:23 PM UTC
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