Diverging Valuations of Amazon and Costco
AMZN Amazon.com Inc
$270.87 +1.48%
View chart & analysis → - 1Amazon's price-to-earnings ratio is only one-third of what it was a few years ago.
- 2Costco's earnings-based multiple has doubled compared to its multiple over the past 10 years.
- 3Amazon Web Services (AWS) recorded a 39% revenue growth rate in the third quarter of this year, but the market is concerned about intensifying competition.
So what's the key point?
Amazon's price-to-earnings ratio has dropped significantly compared to before, while Costco's stock price relative to its earnings has doubled. Amazon's cloud revenue grew by 39%, but there are concerns about increasing competition.
Source The Motley Fool +1 · View original ↗
Today's 5 AI picks, all freeNothing hidden: past picks and how they did against the S&P 500.