What's Wrong With Amazon Stock? Here's the Honest Answer.
There's a cost to its huge opportunity.
Overview
Amazon (NASDAQ: AMZN) stock has rebounded this year, and it's up roughly the same as the S&P 500. However, it's trading at it lowest P/E ratio ever, at only 21 times trailing-12-month earnings.
Why is the market pricing it so low? Here's my honest answer.
Details
Amazon's stock started trailing the market after it announced that it was increasing its capital expenditures (capex) last year. Spending continues to rise, and management expects to spend $220 billion in 2026 alone.
Source
Originally published at www.fool.com.
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Disclaimer: This article is for informational purposes only and does not constitute investment advice. Data may be delayed up to 15 minutes. Past performance is not indicative of future results. Consult a licensed financial advisor before making investment decisions.