Here is why I think Amazon is in a huge bubble. The first indication that I got that Amazon is in a bubble is its P/E ratio. It takes 240.99 years to get your money back.... WHAT!! if you have time and look up when companies exceed a p/e ratio of over 20 and do not bounce under that value their stock collapses. another big thing that led me to think that it is in a bubble because their EPS is so very very low. their current stock price is $955.10 but their EPS is $3.96 and not even 10% f the stock price, so that's a huge a red flag.
If you look at the chart it can keep on going up but to me I see it it going way down, even over 50% lower. I am not saying right now but when the wealth transfer happens I defiantly see it going way way lower. Right now the NASDAQ is at record highs and Amazon is apart of index and the NASDAQ look so over valued and the average p/e ratio is over 20.
so what are you thoughts on this? Are you investing in this company, if so what are you you thinking?
I got the image and charts from www.investing.com
Have a wonderful day!
