One of my favorite Blog Sites – The Felder Report – posted a great summary of why Amazon is a great company, unlikely to grow into its current stock valuation:
- The Felder Report – Amazon: The Dumbest Competitor In America’s Most Popular Commodity-Like Business
With a P/E of 960 – this valuation is truly scary! The current P/E for the S&P 500 is over 20 which is well above its historic average – but helps put Amazon’s valuation into perspective.
The post coincidentally supports my logic for taking a long term flyer on Wal-Mart, during a short term correction in the bricks and mortar retail space.
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