Amazon’s Pricey Stock Is Getting Harder to Justify
- Slower sales growth has investors balking at premium valuation
- Despite rebound, stock remains down over 46% from a 2021 peak
An Amazon Fulfillment center in Robbinsville, New Jersey.
Photographer: Stephanie Keith/BloombergThis article is for subscribers only.
For years, Amazon.com Inc.’s aggressive growth strategy has enabled the stock to command a hefty premium to big tech peers. But with its expansion slowing, many investors are now balking at paying up for the e-commerce giant.
While Amazon’s valuation has dropped significantly along with the rest of the Big Tech group, it’s still by far the most expensive at 34 times profits expected over the next 12 months, according to data compiled by Bloomberg. That at a time when its growth is slowing sharply: analysts estimate revenue will expand just 8% this year, compared with an average of 24% over the past five years.