Amazon.com, Inc. (AMZN): The Bottom Line

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Still, there’s no question that Bezos’ financial interests are perfectly aligned with investors’. After all, he owns 88million shares in Amazon, accounting for nearly 20% of the entire company.

Sell reason: Valuation
Amazon.com, Inc. (NASDAQ:AMZN) is just not cheap. At $120 billion, the company is valued at twice last year’s sales revenue. That premium is four times the valuation of even the most successful traditional retailers like Costco Wholesale Corporation (NASDAQ:COST). And with a sky-high P/E ratio, the e-tailer will have to execute at an extraordinary level for years to justify that premium valuation.

Bottom line
While Amazon.com, Inc. (NASDAQ:AMZN) is already years into a big growth cycle, there are good reasons to believe the company can continue to expand from here.

The article 2 Reasons to Buy Amazon.com and 1 to Sell originally appeared on Fool.com is written by Demitrios Kalogeropoulos.

Fool contributor Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com.

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