“As of Friday, Amazon was selling for 184 times earnings and Apple for 13.8, a 13-to-1 gap that grew even wider in Monday’s trading,” P.E.D. reports. “This is a question that reader Jeff Forsberg has been asking for nearly a year… ‘This is getting hard to understand,’ Forsberg writes. ‘It’s almost as if Wall Street is pricing Amazon on the basis of Apple’s earnings performance. There’s more upside with Apple’s median price target than Amazon’s, and yet Apple’s P/E’s is compressed to a level that strains credibility. By comparison, there’s hardly any coil left in Amazon’s spring. What gives?’”
Check out the excellent chart in the full article here.
MacDailyNews Take: Compression.
[Thanks to MacDailyNews Reader "David E." for the heads up.]
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