Took Amazon 25 years to go from a $0 market cap to a $1T market cap. Took Amazon 2 years to go from $1T market cap to $2T market cap. Took Amazon like 6 months to go from $2T market cap back to $1T market cap.
There decline has nothing to do with COVID. They reaped in a quite a large sum of money during COVID, especially when a great deal were staying at home and they didnt want to or couldnt go to a local store
Eh Amazon’s P/E has settled down since the wildness of 2014-2016 so this isn’t the market being crazy, Amazon really does have the earnings to back it up.
i suspect a lot of the super high PEs we're seeing has to do with the tendency to prefer capital gains over dividends, due to regulations incentivizing this.
Their market cap still makes them one of the largest companies on the planet and their PE ratio is still way higher than would be expected for an almost 30 year old company. Their PE ratio is also still 3-4X higher than other tech giants like MSFT and GOOG. That means it's not so much crashing as starting to approach a more sane valuation.
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[ 3.0 ms ] story [ 70.2 ms ] thread[1]: https://www.bloomberg.com/news/articles/2022-11-09/amazon-hi...
Totally healthy economics.
Don't see what's "unhealthy" or even out of the ordinary about it.
https://en.wikipedia.org/wiki/Seneca_effect
1st Company to have $1 Million drawdown in Market Cap
1st company to have $1,000,0001 drawdown in Market Cap
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1st company to have $10,000,000 drawdown
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1st company to have $100,000,000
...
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1st company to have $1,000,000,000,000 drawdown
...
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There will be a 1st company to have $10,000,000,000,000 drawdown
...
and so on
It doesn't say anything about anything
https://ifunny.co/picture/wagie-cage-9000-improve-worker-pro...