James Alexander Michie: Amazon shares are worth every penny? | Financial Post

Amazon CEO Jeff Bezos.AP Photo/Ted S. Warren | James Alexander Michie

Amazon CEO Jeff Bezos.AP Photo/Ted S. Warren | James Alexander Michie

Author: James Alexander Michie

Amazon’s actions can certainly seem expensive, but they are surprisingly cheap.

Each Amazon stock is valued 70 times more than the estimated future earnings per share of the company. According to experts, it is recommended to own the shares, that is, the investors should buy and keep them, in addition to this it is considered that each one of them could be a valuable stock, reaching a modest price considering the constant growth of the company. Amazon is a company that is committed to being highly effective for its consumers, spending more money on works in progress than anyone else.

On the other hand, the emergence of the sale of Amazon stock on May 14, 1997, suggested that it would never earn money and that the operating operation value would be greater than that of its rivals. Less than a month ago, Amazon fell 19 percent, but first-quarter sales increased to $ 16 million from $ 875,000 the previous year, extending the losses to $ 3 million from $ 331,000. Similarly, in May 1997, Steve Zenker expressed that Amazon was unable to trade with a discount with respect to dividends, profits, and sales. However, Amazon Chief Executive Jeff Bezos considers and states that there is no point in focusing on the daily price of the shares.

Reducing value for customers and increasing convenience at the expense of quarterly earnings explains how Amazon and its shares increased 498 percent over the past five years. Likewise, Amazon had more than five years of advantage over its opponents in cloud computing, where companies rented infrastructure instead of buying it.

Currently, Amazon competes in streaming video with Netflix Inc. and despite the criticism of Donald Trump, Amazon could become a fast logistics leader. Similarly, now it is worth more than the combined market capitalization of 840 billion dollars from six competitors and it is expected that this persists, and the company invests a large sum of money both in technology and in content for the future development of products. It should be noted that Amazon constantly wins by changing through innovation, in such a way that it represents 16 percent of the world’s gross domestic product, excluding China.

Take a read: https://business.financialpost.com/investing/amazon-as-a-value-stock-why-the-840-billion-companys-stock-is-actually-dirt-cheap?utm_campaign=Echobox&utm_medium=Social&utm_source=Twitter#Echobox=1531162034

Source: Matthew A. Winkler | Financial Post


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