Submitted by MAC3113 t3_10p92oh in wallstreetbets
For a smooth brain operator, anyone want to explain why on planet earth Amazon is afforded such a shit-hot p/e ratio while the rest of big tech is trading at a conservative 20p/e? Is it because AWS is just that AMAZing? What am I missing here that the market apparently isn't? Doesn't AWS cover up a lot of their losses in other market domains?
treerter t1_j6j0a2q wrote
Amazon has always tried to minimize its earnings, while focussing on growth. Therefore the earnings are permanently low and the p/e is high.