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profit margins would have to rise from the current net margin of 4.34% to 10.22% to meet that mark. As he concluded... Even if the company manages to do all this, the share price would not advance unless the shares trade, in 2022, at a [price-to- earnings (P/E)] ratio above 21.45 [times]. If, instead, the P/E ratio is 25 [times],
However, the future might not be as rosy as it appears for Amazon... Value guru Murray Stahl – CEO of investment adviser Horizon Kinetics – recently discussed the company in his quarterly investor letter. He noted that current Wall Street estimates assume Amazon’s profit per share will triple by 2022. And since its sales aren’t expected to even double in that time, Stahl explained that Amazon’s
WILL YOUR PORTFOLIO WEATHER THE COMING STORM?
American Consequences
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