AMZN: Wall Street's Most Loved Stock May Be A Growth Trap
- AMZN is the most loved stock on Wall Street, with 94% buy recommendation and zero sells, as analysts and investors extrapolate out recent strong growth.
- While the headline PE ratio is 42x, this figure almost doubles when we look at actual free cash flows available to investors.
- The company's already huge sales and operating income suggest double digit growth unlikely to last, making Amazon a potential growth trap.
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Shares of Amazon (NASDAQ:AMZN) have outperformed the market over recent months as the company's earnings have soared. The rise in earnings has seen the stock's PE ratio fall to its lowest level since 2009, and its lowest relative to the S&P500
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