Anonymous
Anonymous asked in Business & FinanceInvesting · 6 months ago

Is Amazon the most overvalued stock/company right now?

Is has a market capitalization of $1 trillion dollars. But, it only made $230 billion in revenue last year, of which ONLY $10 billion was net income. $1 trillion divided by $10 billion = 100. It's trading at 100 times net income. Is that a lot for a stock?

Update:

Also, is there a known ratio that captures net income to market capitalization? Is this useful?

2 Answers

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  • Sam
    Lv 7
    6 months ago

    I think its going higher. Christmas is coming and thats almost always the best time of the year for this type of stock.

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  • 6 months ago

    If you don't know what a PE Ratio is...you shouldn't be analyzing stocks.

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