According to my calculations, AMZN (current price: $3300) is worth between $600-$1300 per share, based purely on its finances and assuming no future growth. So Amazon is 3 to 6 times overvalued. However, if you wait for Amazon to become fairly valued, I think there is a good chance it will never happen. People consistently speculate that Amazon will become even more profitable, and this makes it so that Amazon's stock is consistently priced higher than its financials would indicate. And these speculations have for the most part been correct, and I think they will continue to be correct. The important question is: Will we see Amazon grow 3 to 6 times in real value in the future? I think the answer is almost certainly yes. This is why I recently bought Amazon stock, and I may buy more.
The reason I believe Amazon's value will continue to skyrocket even more is: Amazon has so far been good to its customers. This is because as popular as Amazon is, alternatives to Amazon still exist, so Amazon must be good to its customers. Once Amazon eliminates all competition and society becomes totally dependent on Amazon, Amazon will start treating its customers like trash in order to maximize profits. This is when Amazon will become really profitable.
[–]bjam27 1 insightful - 4 fun1 insightful - 3 fun2 insightful - 3 fun2 insightful - 4 fun - (1 child)
[–]trident765[S] 2 insightful - 2 fun2 insightful - 1 fun3 insightful - 1 fun3 insightful - 2 fun - (0 children)