Is Amazon Overvalued Reddit?

Yes this reddit post is the first time any one of us have noticed that Amazon has a very high PE and might be overvalued, good catch.

If Amazon does take over the world then no, it’s not overvalued.

Potential earnings is just as important as current earnings.

Is Amazon Overvalued?

Fundamentally, Amazon is overvalued with a P/E ratio of 81.12 without offering a dividend, according to Macrotrends. I continue to view the stock as the “United States of Amazon,” as longer-term growth remains highly likely. Amazon Prime memberships continue to grow.

Is Amazon P E ratio too high?

Main Reason / TLDR: Amazon’s P/E is high, because the market is pricing Amazon as a tech company (with high future earnings potential from high margin products/services), on Amazon’s present lower earnings as a retail company (low margin, high revenue retail sales).

What is Amazon’s PE ratio?

Amazon.com PE Ratio. : 82.91 (As of Today)

What is the best stock to buy right now?

Best stocks as of April 2020

SymbolCompany namePrice performance (52 weeks)
LRCXLam Research Corp34.07%
AAPLApple Inc33.87%
BIIBBiogen Inc33.84%
MSFTMicrosoft Corp33.72%

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Who Will Amazon buy next?

Amazon has diversified its acquisition portfolio into several market sectors, with its largest acquisition being the purchase of the grocery store chain Whole Foods Market for $13.7 billion on June 16, 2017.

Acquisitions.

Number6
CompanyLiveBid.com
CountryUnited States
Acquired onApril 12, 1999
Acquired for (USD)$300,000,000

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What is wrong with Amazon stock?

Amazon Stock Rises From One-Year Low

the S&P 500. Those holding Amazon stock fretted over the potential negative impacts of investments on infrastructure, competitive pressures in cloud services, increased spending on its one-day shipping program and the impact that might have on profits. The concerns seemed justified.

Why Amazon PE is so high?

Main Reason / TLDR: Amazon’s P/E is high, because the market is pricing Amazon as a tech company (with high future earnings potential from high margin products/services), on Amazon’s present lower earnings as a retail company (low margin, high revenue retail sales).

Is it better to have a higher or lower P E ratio?

Generally speaking, a high P/E ratio indicates that investors expect higher earnings. However, a stock with a high P/E ratio is not necessarily a better investment than one with a lower P/E ratio, as a high P/E ratio can indicate that the stock is being overvalued.

What is the P E ratio of the S&P 500 today?

Stats

Last Value23.16
Last UpdatedApr 8 2020, 12:32 EDT
Average Growth Rate8.46%
Value from 1 Year Ago18.94
Change from 1 Year Ago22.34%

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What is a good PE ratio to buy?

Common Sense Investing Using the P/E Ratio

A P/E ratio of 40 is really high, a P/E ratio of 7 is really low, and a ratio of 14 represents the average over modern history. Armed with this information, you can look up the current P/E ratio of the stock market and figure out where things are relative to historical times.

What P E ratio is too high?

Generally speaking, a high P/E ratio indicates that investors expect higher earnings. However, a stock with a high P/E ratio is not necessarily a better investment than one with a lower P/E ratio, as a high P/E ratio can indicate that the stock is being overvalued.

What is a strong P E ratio?

A higher P/E ratio shows that investors are willing to pay a higher share price today because of growth expectations in the future. The average P/E for the S&P 500 has historically ranged from 13 to 15. For example, a company with a current P/E of 25, above the S&P average, trades at 25 times earnings.

What are the top ten stocks to buy right now?

Looking for market-beating stocks? These are some of the best companies to consider.

  • TerraForm Power (NASDAQ:TERP)
  • Brookfield Infrastructure Partners L.P. (NYSE:BIP)
  • CareTrust REIT (NASDAQ:CTRE)
  • iRobot (NASDAQ:IRBT)
  • lululemon athletica (NASDAQ:LULU)
  • Wayfair (NYSE:W)
  • Netflix (NASDAQ:NFLX)
  • Constellation Brands (NYSE:STZ)

What are the best cheap stocks to buy right now?

EDITOR’S PICKS

SymbolLAST_PRICE% Change
AQST Aquestive Therapeutics, Inc.2.1100+14.67%
IMV IMV Inc.1.7200+1.78%
INO Inovio Pharmaceuticals, Inc.8.44+9.04%
SELB Selecta Biosciences, Inc.1.9500+6.56%

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What are the best low cost stocks to buy right now?

  1. The best cheap stocks to buy now. Roughly 11 years into the longest bull market in U.S. history, investors may need to hunt a little harder than usual to find cheap stocks.
  2. Sirius XM Holdings (ticker: SIRI)
  3. ADT (ADT)
  4. Zynga (ZNGA)
  5. Century Casinos (CNTY)
  6. Nokia Corp. (
  7. Nomura Holdings (NMR)
  8. MFA Financial (MFA)

What does Amazon own now?

Amazon owns over 40 subsidiaries, including Zappos, Shopbop, Diapers.com, Kiva Systems (now Amazon Robotics), Audible, Goodreads, Teachstreet, Twitch and IMDb.

What did Amazon buy recently?

Amazon has diversified its acquisition portfolio into several market sectors, with its largest acquisition being the purchase of the grocery store chain Whole Foods Market for $13.7 billion on June 16, 2017.

Acquisitions.

CompanyPlanetAll
CountryUnited States
Acquired onAugust 4, 1998
Acquired for (USD)

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Will Amazon Buy Sony?

Amazon is reportedly interested in buying Sony Pictures, which would mean that the Spider-Man rights could revert to Marvel Studios regardless of whether or not Sony and Disney sort out their current problems. Amazon will continue to grow, like they say “the rich keep getting richer”.