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VisualMod t1_j26ewj0 wrote

>Amazon may be overvalued at its current price, but it is still the leader in its industry. I believe that investors are willing to pay a premium for Amazon because of its strong growth prospects.

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Jazman1985 t1_j26g6as wrote

If you think they can effectively triple their margin % or their total market share in the next 6-12 months they aren't overvalued.

A company that's returning just north of a 1% roi in a market where rates are at 4-5% is not something I'm going to throw money at unless I think they're going to get to above a 5% roi in a short amount of time.

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4troglodyte t1_j26hxyo wrote

What is your investment horizon?

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Jazman1985 t1_j26snip wrote

I'd be willing to hold onto a company long term provided they're performing well. I wouldn't want to hold for more than a year without seeing some positive increase in outlook.

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4troglodyte t1_j26teee wrote

I have only started in AMZN last Thursday after watching it for years…I plan to hold until 2025 barring black swan, Lord willing🙏🏻

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Jazman1985 t1_j26tkby wrote

I wish you luck, I just don't see a way their profits increase substantially from this point.

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4troglodyte t1_j26u3wx wrote

My premiss is that AWS is not adequately valued in the stock price at these levels, leaving the other moving parts out of the near term calculus, AMZN could revisit $160-$170 by 2025 potentially if AWS over performs. Bon chance with your trades in 2023🙏🏻

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joevan55645 t1_j26gvch wrote

People have been asking this question for the better part of 10 years. I normally don't like to buy high PE stocks but I own Amazon. I see Amazon trucks in my neighborhood on a daily basis. I order all kinds of things on Amazon. Aws is absolutely massive. The stock has been cut in half. If you believe Amazon is going to continue growing and become a global Force it's my opinion you want to own the stock. If you think the growth is going to Peter out the stock is likely going to go nowhere even when the market recovers you're going to have a sideways stock on your hands as the earnings slowly come up and the PE goes down. If rates are back down to two or three percent by the end of next year which wouldn't surprise me in the slightest. It's very likely Amazon is going to be higher. How much so? Couldn't tell you but that's the setup.

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Cutlercares t1_j26io56 wrote

75 P/E

Answered your own question.

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Qzy t1_j26ni51 wrote

I love the company, but I'm not touching something above 25 p/e with a cactus.

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MediumRB t1_j26p630 wrote

If you have profits, close your position.

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VisualMod t1_j26evya wrote

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1

phlash999 t1_j26mu8l wrote

They need a very strong growth outlook to justify a p/e of 75. How's that looking?

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Mediocre_Suspect_203 t1_j26mv0i wrote

From my own perspective yes. But someone probably thinks differently

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bigtechdroid t1_j26nldb wrote

If they stopped reinvesting all their profits it would actually be a pretty solid company

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