[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.

[eloff]

It's not untrue, Amazon is largely a retail business and you can't compare it's P/E to tech socks, that'd just be silly. You clearly know enough to know that, so I don't get why you insist.

As for producing the numbers on the YoY for the retail companies you listed - I hope somebody else does that. I'm busy.

[mythz]

AWS accounts for their largest profits, growth and margins, their financials would be even worse if you compared them against retail stocks which are high capital intensive and low margin businesses, there's no way AMZN is valued as a retailer which would make their valuation even more insane.

[User23]

Amazon is valued based on the implicit assumption that Bezos is a Buffet tier investing genius. So far, that assumption has held. The main difference is that Bezos invents new businesses in addition to buying them. Nobody is arguing that retail isn't a big part of their business, but it was only ever meant to be the bootstrap. It's incredibly rare to see such executive and entrepreneurial skill combined in the same individual.

[eloff]

Yes, this is my take on it as well. They're betting he can keep growing at 20% for many years to come, which would be almost unprecedented for a company of that size and age.