Is Amazon Stock Too Expensive?
There are several ways to consider if a stock is expensive. However, you may be surprised to find that they do not include the selling price. That's because even though Amazon's (NASDAQ: AMZN) stock is selling for over $3,000, what truly matters is where it trades relative to the company's results, such as earnings or revenue.
What's more, from a practical standpoint, most brokerages will allow you to buy fractional shares of a company. For instance, if you only had $300 to invest in Amazon, you can buy 0.10 shares (at a $3,000 stock price). That said, let's look at Amazon's business and then determine if the stock is expensive using financial ratios.
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Source Fool.com
