[acro]

An investor can get value from a company in other ways than net profit. For instance share buybacks, dividends, mergers and acquisitions, companies can pay back capital. P/E ratio is just one very simple number which is not applicable to all situations. For example REITs have often very high P/E because most of their profit is distributed as dividends. Using P/E to try to value Amazon is in my opinion misguided.

[simula67]

> For instance share buybacks, dividends, mergers and acquisitions, companies can pay back capital

Where will the money for all of this come from ?

Why the comparison to real estate ? Is your argument that assets held by Amazon will appreciate somehow in the future ? If so which ones ?

[acro]

Revenue is the top line, net profit is the bottom line. There are many ways to get money out of a company which come before the net profit line in an income statement. Companies can also spin off parts of them in many different ways. The only thing I'm stating that P/E is often the wrong number to look at in a company.