> though I agree that because AMZN could probably simply 'turn on profit' at any time
I'm confused—Amazon is profitable already, no?
I'm confused—Amazon is profitable already, no?
Massive revenue, tiny profit.
So, this makes their P/E ration quite massive and crazy as well.
Usually companies are based on the present value of all future earnings, kind of implying a P/E multiple of like 8 or 25 or whatever. Amazons is crazy high.
This is because it's assumed that Amazon could, at any time, start declaring massive profits, but they chose to re-invest instead.