February 13, 2014
Deflation Theory Reality Check: Why Inflation is Severely Understated; Feel Good Effect
Amazon: AMZN : The PE of Amazon is 592, Valuation is $160 Billion Linked In: LNKD : PE of Linked In is 837, Valuation is $23 Billion Facebook : FB: Facebook PE is 106, Valuation is $165 Billion Priceline : PCLN : PE of Priceline is 36, Valuation is $64 Billion Hertz : HTZ: PE of Hertz is 37, Valuation is $12 Billion Starbucks : SBUX : PE of Starbucks is 483, Valuation is $57 Billion Boston Beer (Samuel Adams) : SAM : PE of Boston Beer is 43, Valuation is $3 Billion I could go on and on but I won’t. At current earnings, investors in Amazon will have to wait 592 years for a positive return on earnings. More realistically, they would have to wait forever because Amazon does not pay a dividend.