Investors Get These 3 Things Wrong When It Comes to Amazon Stock
Amazon's (NASDAQ: AMZN) stock is an anomaly in many respects. Its approximate $850 billion market cap often implies slow growth ahead, but Amazon has typically maintained a rapid growth pace.
Nonetheless, its stock has fallen significantly in the bear market. Its elevated P/E ratio, which exceeds 75 even after the decline, may explain much of the drop. But another factor likely relates to three critical misperceptions that have wrongly diminished confidence in Amazon.
Admittedly, one should understand this perception. Amazon pioneered e-commerce in the first few years of its existence. Also, Amazon's low prices, extensive product choices, and ease of use forced Walmart, Target, and Costco Wholesale to boost their e-commerce and omnichannel approaches to survive.
Source Fool.com
