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"Any tech company" was probably an overstatement, companies like Apple and Google are much more grounded in valuation compared to companies like Amazon, which h

• paxys 7y ago
  So...all tech companies are overvalued as long as you exclude the ones that are correctly valued?
• pbreit 7y ago
  But PE is obviously the wrong metric for Amazon since we know it reinvests all its earnings and has proven ability to convert investment into cash flow.
  • throwaway2048 7y ago
    Or maybe it isn't? And the plan of theirs isn't going to result in huge profits, ever.
    • dodobirdlord 7y ago
      Seems unlikely, it's not as though their core business lines are unprofitable.
      • s1artibartfast 7y ago
        Do you think their core business lines have room to grow 400%? Alternatively, can they cut costs 75% with their R&D investments?
    • BubRoss 7y ago
      Profits reinvested into successful growth is still profit.
• Mathnerd314 7y ago
  Amazon has low margins, I think the theory with the PE is that they can increase margins after achieving market dominance and get better earnings. Walmart is still bigger so Amazon isn't there yet. And then it could also be high because of the cloud/tech bubble.
• gzer0 7y ago
  This is due to Amazon purposefully keeping gross profits at $0 for years. The CapEX investment was through the roof; investments such as AWS which were criticized heavily in their infancy. It was widely known Amazon would be able to turn a profit, they decided to ruthlessly expand their enterprise.