AMZN Stock – Amazon is Knocking on Your Door
With a forward-looking P/E ratio of 141, Amazon stock isn’t even close to winning any value awards. Then again, an alarmingly-high valuation hasn’t held AMZN stock back.
Shares of Amazon stock haven’t been priced below a P/E of 50 since mid-2009, but AMZN shareholders have enjoyed a stunning 340% appreciation since then … making it one of the best tech stocks for that period. Point being, Amazon has been able to shrug off a ridiculous valuation that investors wouldn’t tolerate with many other names.
AMZN stock shareholders aren’t apt to see margins widen or profits improve anytime soon either, as Amazon.com is aiming to deepen its connection with consumers’ daily lives … and that’s not happening for free.
The latest venture is grocery deliveries, via a sub-site called Amazon Fresh. The service is only being piloted in a small number of locales now, but so far the reviews have been generally positive. While it’s unlikely the grocery business itself will turn into a cash cow, the service will draw more users to Amazon’s websites where they may end up buying something more profitable for the world’s largest online retailer.