Amazon is not cheap but…

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Amazon (AMZN) is not cheap but with trailing twelve month earnings per share rising from $1.25 a year ago to $4.90 today it is at least growing into its valuation. PE has fallen from around 500 to 185.  Consensus forecasts expect $7.24 in EPS this year, and $12.44 next year. That is 59% of compounded earnings growth over the next two years and would put the P/E at 72.4. The most bullish forecast is for $17.43 or a PE of 52.

Risk Disclaimer: This article does not constitute a recommendation to buy or sell. Investing in stocks or other securities and derivatives is a high-risk activity and not suitable for everyone. It is strongly recommended that individuals should consult with a SEC-registered investment adviser prior to making any investment decisions.

Disclosure: The author holds no positions in any of the stocks mentioned nor has any intentions to initiate any in the next 72 hours.

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