[mythz]

Only 20% is why the stock is down after hours, at 100 P/E AMZN is speculatively priced where they're expected to achieve infinite growth until they deliver financials that justify their valuation which Investors are betting on to happen before they hit any growth ceiling. There's also no room for an economy downturn which expensive stocks like AMZN are extremely volatile to.

[eloff]

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.

[mythz]

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.

[eloff]

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.

[mythz]

> 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

[eloff]

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

[mythz]

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

Then please lay out your understanding of what justifies AMZN's price in your eyes as you've yet to quote a single figure.

The only reason why WMT's P/E is so high (and their Market Cap doubled in since 2016) is because of their success in their e-commerce business which saw 37% growth YoY.

You've been saying AMZN is a retail business whose financials can't be compared to Tech stocks which is clearly untrue, AMZN's retail business is less than 1/2 the size of Walmart yet they're worth 3x more who would've been worth even more if they didn't give out dividends which AMZN can't dream of doing at their current valuation.