Even Amazon and the tech giants could fail to click in a changing market
If the online retail giant has felt some pressure on profits, what price other, less secure, Silicon Valley firms?
The march of Amazon and other US tech giants to world domination can sometimes seem unstoppable. Investors who have bought into the Amazon story have rarely been let down either. Amazon’s share price performance since the millennium stands at +2,345%.
Last year tech stocks were in overdrive until the autumn, when almost all took a big tumble. But Amazon is still up more than 25% on this time a year ago, and a reading of 90 on its price to earnings ratio – essentially a measure of investors’ hopes for the future – suggests that its stellar growth is expected to continue.