/biz/ - Business & Finance

>>18396895
BAND isn't my company and I don't own any BAND stock. What your post isn't taking into account is that those stocks didn't just start trading today. Yes, Amazon has may have a current PE ratio of "only" 89, but they have traded at much higher price to earnings ratios in the past. According to this chart, since 2011, Amazon has generally been trading at triple-digit PE, if not quadruple-digit, PE ratios until relatively recently (latter part of 2018), and in certain years (periods from 2012-2013 and 2014-2015) was had negative earnings.
https://www.macrotrends.net/stocks/charts/AMZN/amazon/pe-ratio

If a stock trades at 276 times earnings, you might say, "it'll take me 276 years to make my original investment back!" But that assumes that the company will undergo minimal growth over the coming years. If you think that the company will be growing significantly over the coming years, then the fact that the stock price is 276x the prior year's earning is really not a very significant measure of value.