They could but if they stop expanding and have a 20B yearly profit they will get a 10 or 15 P/E ratio with a market cap of 200B-300B and a 7% increase each year .. and they will reach the 1T mark the year Madoff leaves prison.... to justify current valuations and more they MUST continue expansion AND turn in profits
A 10 or 15 PE because they stop investing at the rate they currently do? are you kidding me??
MSFT runs with a 30 PE because of cloud, Amazon is killing it with cloud.
WMT is at a 30 PE because they’re maybe starting to get a baby grip in online retail, Amazon is hammered with antitrust for already owning that market.
And that’s not counting in their current edge in voice (without investing in it anymore) which is arguably the real next big thing.
I can go on and on, to put Amazons current state at a 10-15 PE is quite frankly ridiculous, they’ll get a few times that PE without investing a dime in the future.