Live Amazon Chart and Prices
Where Can I Spread Bet on the Amazon Share Price?
26 March 2017: Amaze Amazon!There’s a good article in this week’s Economist on how over-priced the Amazon stock is (see link below).
The article might not be great for short-term traders, it is more focused on Amazon’s long-term threats and potential.
However, it’s an interesting read for anyone looking at the stock and it does highlight how overvalued the current Amazon share price is.
Short-Sellers RemorseThink twice before short-selling Amazon on the back of the article.
The current price is being driven on future potential and rather than whether the current valuation is realistic.
If you short the stock you might be standing in front of a freight train.
And if you buy the stock? You run the risk of quick pull backs and large price adjustments.
Amazon in NumbersYes, yes, yes, that is correct. The above is not a typo.
As of 26 March 2017, the PE ratio is a comedy 173.13 when the tech giant’s share of online revenues is already very high.
Just to confirm, the current PE ratio for the S&P 500 index is 15 and that is considered high / a warning signal.
For more see Are investors too optimistic about Amazon?
Remember: Spread betting, CFDs and forex trading carry a high level of risk. You can lose more than your initial investment. These products are not suitable for all investors. Only speculate with money that you can afford to lose. Make sure you fully understand the risks involved and seek independent financial advice where necessary.