Is amazon stock a good buy or over valued?

I think it may be because they generally don't report profit. They reinvest into the business and therefore don't have much "profit" to report. Someone in finance correct me if I'm wrong.

But if that's the case, I'm not really sure how you can value them. Maybe look at Gross profit instead? In 2016 they spent 33% of their gross profit on R&D.

The P/E ratio is indeed insane. You have to wonder as a shareholder at some point do they "flip the switch" and turn into a profitable company that distributes earnings back to shareholders in the form of dividends?

If they took all of their R&D and instead just reported it all as profit then the P/E ratio would be much closer to 15 or 20 which is more reasonable for a company of their size.

No way Carlos slim survives trump

It's true, user. I haven't bought a book from the book store in ages!

Amazon is over valued, there's no denying it.

I love everyone saying "it's different this time, online shopping!!" But deep down they know Walmart and Google can do it better at half the costs

I can't wait until Walmart will have a better online shopping experience.

Try to find a sellers store on Amazon. Oh wait, you can't. You have to use a fucking third party website to back into the sellers page on Amazon. You're paying rediculous P/E multiples to a site that doesn't even display their sellers' stores.

And the Whole Foods buyout is retarded. Not only did Whole Foods shareholders get fucked with a cash deal, but Amazon will turn these stores into a "grab and go organic food market" all on the front that they want to start delivering groceries.

It's a huge meme. Even the drone shit. How the fuck are they going to deploy that. It's not possible without extreme technological and geographical advancements (which are in the pipeline hurt durr)

the whole stock market is overvalued

Interesting viewpoint. What do you think about the shipping pipeline though? It seems like it's a giant moat with the warehouse drones and fast delivery times that it would be tough for someone like Walmart to catch up to them in that way.

Also they have quite a few other businesses working well for them such as Kindle, Alexa, and AWS.

I'm not sure seller websites are that important to consumers at the end of the day. Customers just search for what they want and then buy it, no?

They definitely have a habit for announcing memes like the grocery technology and the drones, but I don't think you should let that discount the fundamentals.

I don't think the drones will be doable in ways people think. Everyone who lives in an apartment, condo, or row house won't be able to use it. Then people have to worry about stuff getting stolen even more.

I just don't think it's doable right now without drop off points.

AWS is their best product. That's what you buy Amazon for, if you must over pay.

There are no fundementals though. Everything that is priced into the stock price is speculation on future earnings. That's the problem. Amazon would have to get to a 2 trillion market cap just to have a reasonable 30x P/E (which is still pricey).

It's a bubble. It's not different this time. Enron had really good ideas too with bubble prices. So did Microsoft in 1999.

IBM is the most undervalued stock right now with its focus and partnerships with developing blockchain technology. If you're going to invest in tech, invest it there. Plus the 4.25% yield makes me cum and the dividend history is amazing. And it's trading for less than 12 P/E

IBM fucked up with pajeet consulting for years. Now they are finally getting back to what made them so great in the first place: R&D and groundbreaking technology. This is the true value play, not Amazon at these prices.

Amazon is perpetrating a massive accounting fraud which is bankrupting legitimate american businesses. When they announce their eventual staggering losses, i.e. when their 1% profit on revenue becomes -1%, it will be the next great depression.

too big to fail desu
only up from here
they will literally go to the moon
:^)

>Everything that is priced into the stock price is speculation on future earnings
This is my problem with Tesla

Undervalued however with all the tank of the market "correcting" in a while you may have to wait at least 1-2 years.

Yeah I agree with you said about the drones, I just can't imagine that becoming a reality any time soon.

damn, I need to look into this.

I don't think amazon even knows what their accounting ledger should be. At 1% profit and a massive P/E one little hiccup sends this blastoma negative and -1000 P/E and worth fucking nothing as it will burn through its equity in months shipping for free the shit it's losing dollars on. Unfortunately, it's already belched out enough negative margin merch to put millions of people out of jobs and thousands of business in bankruptcy.

Amazon is the blackhole American retail created to kill itself.