Amazon

Submitted by 20k2one50k2NADA t3_ygliy9 in wallstreetbets

I know I shouldn’t trade looking at PE, but I did buy an Amazon put, and after cashing it in I bought another out to January 90 strike. How does Amazon have such a high PE when their growth does not look all that great?

13

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Swiftnice t1_iu96afg wrote

What does Penis Envy have to do with amazon?

12

stockpreacher t1_iu97kp9 wrote

Because it's overbought and overhyped just like Tesla and Apple.

People buy companies they know without evaluating Financials.

See 2020/2021 for details.

6

ABena2t t1_iu95g3e wrote

new article just came up on my feed saying that "Amazon warns 0 profit for this holiday season". I have no idea if this is true or not.. thing just popped up and I haven't done any research to back it up.. just saying

3

VisualMod t1_iu9385i wrote

>It is true that Amazon's growth has slowed in recent years, but the company continues to be highly profitable and generate a lot of cash flow. This high level of profitability and cash flow allows Amazon to maintain a high PE ratio.

2

20k2one50k2NADA OP t1_iu94mc9 wrote

I think there could be a lot more PE contraction if the Fed. remains hawkish.

0

That-Whereas3367 t1_iu9kyo4 wrote

Index funds. They 'invest' money based purely on market cap.

2

VisualMod t1_iu937gb wrote

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