Amazon Stock Got Crushed, but This Number Shows Why It's Still a Buy

It turns out Amazon (NASDAQ: AMZN) is mortal.

After years of breakneck growth, shares of the e-commerce stock plunged Friday after the company called for fourth-quarter revenue to grow just 2% to 8%, slower than the pace of inflation. Currency-exchange headwinds accounted for 460 basis points of the expected slowdown, but the forecast still shows the company struggling to grow in a difficult economic environment. It also shows that Amazon's historical growth rate of 20% or more could be a thing of the past.

While it's understandable why the stock fell 6.8% on Friday even as the Nasdaq soared nearly 3%, one number from Amazon's report that was largely ignored shows why the stock still looks attractive.

Continue reading


Source Fool.com