Is Amazons Stock Over-Priced?
By elmiko
@elmiko (6630)
United States
January 23, 2010 1:49pm CST
I think it is absolutely especially if you compare it to Walmart and look at the income and sales of both companies. The stock price is inflated.
2 responses
@magtibaygom (4856)
• Philippines
20 Apr 10
The law of supply and demand. The supply of stock available for the public is declining, while the demand from the public is growing. I think that may be the reason why the stock price of Amazon looks like inflated. Expectations are high. Let's pray Amazon meet their expectations. :)
@elmiko (6630)
• United States
21 Apr 10
I personally think Amazon.com is the #1 store website online, and I definitely think Amazon will meet expectations and continue to grow. I personally feel its the #1 store of the future since more and more people will continue to buy online especially among younger people who are growing up being more accustomed to the internet. The thing that makes Amazon.com such a great website is its connections with so many 3rd party websites that sell to customers via the Amazon.com website. Amazon.com gets a part of those profits for helping those websites get exposure to customers. I still think the price is inflated when compared to Walmarts stock but Walmart was around when stocks were lesser in price so I guess it makes since for the Amazon.com stock to go higher since its a newer stock in a world where prices are now higher. Amazons stock doesn't offer a dividend either which also sucks.
@magtibaygom (4856)
• Philippines
21 Apr 10
Amazon is a growth company, and we don't expect growth companies to give dividends. I am one of those online affiliates of Amazon selling books and CD's in my websites. I am thinking of investing in Amazon's stock too.
