Amazon’s valuation multiple is currently higher than Apple, but rapid margin and EPS growth should bring down the P/E ratio to more attractive levels.
Rapid improvement in revenue and profits has always been cheered by Wall Street which should help in continuing a bullish sentiment towards Amazon stock.
Is Amazon a good buy right now?
Amazon stock remains a good buy, as we’ll get to. However, there are two caveats: Only investors who are long-term focused should consider buying shares. Investors should build their full position by dollar-cost averaging — investing the same dollar amount at some set time interval, such as quarterly.
What company is better than Amazon?
More so than any other company, eBay competes directly with Amazon for third-party sellers to join the marketplace platform. By gross merchandise volume, eBay has the second-biggest online marketplace in the U.S. with 25 million sellers on its platform, significantly more than Amazon’s estimated 2 million sellers.
Will Amazon Buy Apple?
Warren Buffett’s Berkshire Hathway (NYSE:BRK. A) has increased its stake in Amazon (NASDAQ:AMZN) while also having close to a $50 billion stake in Apple (NASDAQ:AAPL). Berkshire’s stake in Amazon is now close to $1 billion. Apple’s market cap is over $1 trillion, while Amazon’s market cap is almost $900 billion.
Why is Amazon stock more expensive than Apple?
AMZN’s ratios for P/E and EV/EBITDA are higher (more expensive) relative to AAPL’s because Amazon is simply no where near as profitable as Apple. So their revenue growth potential is smaller than Amazon’s and they’re not likely able to increase prices significantly.
Will Amazon stock go up in 2020?
Now It’s a Best Idea for 2020 at Cowen. Amazon.com stock will rise due to the strong growth in its cloud-computing and advertising segments, according to Cowen. Amazon shares were up 0.8% to $1,782.71 on Tuesday. The analyst estimates Amazon’s ad sales will rise 36% year-over-year next year.
Why is Amazon stock dropping?
Amazon shares fell as much as 9% in after-hours trading Thursday following its third-quarter earnings report, with the stock recovering to a 1.3% loss by Friday afternoon. The move was in part due to Amazon’s return to investing heavily in its business, which weighed on profitability.