Amazon.com Announces Second Quarter Sales Up 20%

Post by eloff » Thu, Jul 25, 2019, 11:16 PM UTC

mythz wrote: post #60

eloff wrote: post #57

Earlier quoted context omitted.

Growing 20% at Amazon's size is why the stock is worth so much. Almost all companies have slowed down long before this point. Amazon is still growing like a late stage startup. It's really a remarkable feat.

Are Facebook, Google, Microsoft also still considered late stage Startups? FB Growth 28% YoY, P/E 26.51, Mkt Cap 573B GOOG Growth 19% YoY, P/E 25.90, Mkt Cap 788B MSFT Growth 12%, P/E 27.69, Mkt Cap 1.07T They all have a much more reasonable P/E. Agreed that it's harder to achieve growth from a massive base, but they're also priced from being able to continue doing so much better than their competitors.

Post by mythz » Thu, Jul 25, 2019, 11:33 PM UTC

eloff wrote: post #61

mythz wrote: post #60

Earlier quoted context omitted.

Are Facebook, Google, Microsoft also still considered late stage Startups? FB Growth 28% YoY, P/E 26.51, Mkt Cap 573B GOOG Growth 19% YoY, P/E 25.90, Mkt Cap 788B MSFT Growth 12%, P/E 27.69, Mkt Cap 1.07T They all have a much more reasonable P/E. Agreed that it's harder to achieve growth from a massive base, but they're also priced from being able to continue doing so much better than their competitors.

It's pretty meaningless to look at P/E for tech companies and compare it to a retail company. But for those companies it's also pretty impressive, market beating growth.

    WMT 38.8
    COST 34.33
    KG 9.24
    WBA 10.75
    HD 21.73
    TGT 15.39

Post by nicoburns » Thu, Jul 25, 2019, 11:42 PM UTC

mythz wrote: post #30

brlewis wrote: post #27

Earlier quoted context omitted.

Price/Sales is 4.01, lower than GOOG, FB or MSFT. They are going for growth, not profit. No valuation metric is perfect, but P/E is particularly useless for this company.

They're not a Startup, they've been "going for growth" for a 1/4 of a century, eventually you need to make a profit to justify your Market Cap. Just because profit isn't a goal for AMZN doesn't mean it's not a vital financial metric.

Post by changoplatanero » Thu, Jul 25, 2019, 11:54 PM UTC

nicoburns wrote: post #65

mythz wrote: post #30

Earlier quoted context omitted.

They're not a Startup, they've been "going for growth" for a 1/4 of a century, eventually you need to make a profit to justify your Market Cap. Just because profit isn't a goal for AMZN doesn't mean it's not a vital financial metric.

I don't understand why companies don't just let there stock price fall. This makes no material difference to the operating of the company, right?

Post by mythz » Fri, Jul 26, 2019, 12:10 AM UTC

eloff wrote: post #66

mythz wrote: post #63

Earlier quoted context omitted.

> It's pretty meaningless to look at P/E for tech companies and compare it to a retail company. Tech stocks usually have higher P/E's than retailers, but for comparison here are the P/E Ratios of the world's largest retailers: WMT 38.8 COST 34.33 KG 9.24 WBA 10.75 HD 21.73 TGT 15.39

Yes, but now look at their growth as well and you'll understand Amazon's valuation is not wholly out of line.