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Comment by bradhe | Hacker News Reader

Took Amazon 25 years to go from a $0 market cap to a $1T market cap. Took Amazon 2 years to go from $1T market cap to $2T market cap. Took Amazon like 6 months to go from $2T market cap back to $1T market cap.

Totally healthy economics.

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Unsure what you mean. That's how exponential growth works, and then that's how market downturns work, combined with economic uncertainty of COVID.

Don't see what's "unhealthy" or even out of the ordinary about it.

There decline has nothing to do with COVID. They reaped in a quite a large sum of money during COVID, especially when a great deal were staying at home and they didnt want to or couldnt go to a local store

i suspect a lot of the super high PEs we're seeing has to do with the tendency to prefer capital gains over dividends, due to regulations incentivizing this.

Qualified dividends are taxed at the same rate as cap gains: https://www.fidelity.com/tax-information/tax-topics/qualifie....

Does it work for corp/foreign shareholders?

Eh Amazon’s P/E has settled down since the wildness of 2014-2016 so this isn’t the market being crazy, Amazon really does have the earnings to back it up.

"healthy" means there should be no up nor down, should be linear valuation.

Does it pay dividends? Or plan to pay?

They've announced stock buybacks which are practically the same thing: https://www.cnbc.com/2022/03/09/amazon-announces-20-for-1-st...

AMZN is completely propped up by AWS and AWS growth is slowing.

>Fortune is of sluggish growth, but ruin is rapid

https://en.wikipedia.org/wiki/Seneca_effect

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