19 cents quarterly earnings, best the company has done in years = $0.76 yearly Earns. Multiply by 1000 PE Ratio, and Voila it goes higher! But if you believe even FaceBook's 80 PE is richly priced, then the stock could plunge, really plunge.
going to build and buy more Data Centers. Plus Microsoft grew its Cloud Business bit faster than Amazon. Apple grew overall Sales a lot faster 33% than Amazon's slower 20% Growth.
THIS TIME IS DIFFERENT ! No Bubble here... 700 PE Ratio (even if Amazon can repeat its 0.19 profit for 1 quarter into all year). Why would anyone THINK its a Bubble? $1 a share earnings eventually someday for the year X 550 PE. 550PE doesn't discount to Infinity does it?
There's NO BUBBLE? Amazon Stock is only valued at 30 PtoG (Price to Growth Rate). Lets see given Apple Grew Sales faster at 33%, if it also had a 30 PtoG Valuation Apple Stock would not be 125, instead be 3000.
Its not even regular sales, but normally low valued Retail Sales. Alot of retailers sell for 1x Sales, even 0.2x Sales. And if they sell for 1x Sales, much higher profit margins than Amazon. Amazon even at Facebooks PE of 80, or 1/10th Amazons current stock price, would still be richly valued.
Apple just grew revenues at 33% year over year. What will Amazon grow its revenues? 15%. OK Amazon's Cloud Div. is growing a lot faster at 50% growth. But its only about 6% of Amazon's revenues, and MSFT (Microsoft) grew its Cloud Revenues faster at 80 %
And assume Amazon earns $0.25 for the quarter or $1.00 per share annualized. Times 15 PE ratio like Apple and you get Amazon as a $15 Stock.
If it finally earns a profit of say $0.25 /sh. for the quarter = $1.00 Earns. annualized for 2015. Slap on a 400 PE that's a $400 stock. Slap on an 80 PE like FaceBook and Amazon would be $80 stock price. But Facebook is growing 3X as fast in sales as Amazon. So slap on a 15 PE like Apple (also growing a lot faster than Amazon), and Amazon becomes a $15 Stock Price.!
Also, Dow Jones News reported Aliababa is opening new US Data Centers and rolled out 65 new CLOUD Services snd Products in USA
If Amazon finally earns any money, say $1 a share per year... Thats only 488 PE Valuation Ratio. Or over 30x its Sales growth rate Sales of 15% per year. 15% growth nearly 500 PE ratio
Amazon may increase profits too some ANALysts are forecasting. They really mean Amazon may REDUCE ITS QUARTERLY LOSS vs last few quarters losses.
Recent report showed, so upped $Sales 33% and profits up 35%. And DOUBLED its SALES IN CHINA. That's a Strong Moat Business, if can INCREASE PRICES AND DOUBLE SALES IN EVEN CHINA, known for cost cutting.
Apple just grew Sales 33% and the stock got Slammed. Amazon may increase its Revs. 15% OVERALL (yes we know its Cloud Div. grows alot faster but its only 6% of total Revs. at Amzn and the main parts of Amazon the Retail Sales are growing Anemic 8 - 10%).
WSJ Article says it earned cumulative $2 Billion past 17 years (that's less than Wal-Mart or Apple makes in a month). Next Amazon is only forecasted to grow Revenues 15% to $22 billion this quarter. 15% MEASLY GROWTH FOR A SUPPOSED TECH. CO.