Amazon Spread Betting and CFD Trading Guide

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Where Can I Spread Bet on the Amazon Share Price?

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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 Remorse
Think 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 Numbers

  • arrow_forwardMarket capitalisation: $400bn
  • arrow_forwardIt’s the fifth largest company in the world by Market Cap
  • arrow_forwardPE Ratio: 173.13 = off the charts
  • arrow_forwardShare price: $846 (not far off the 52 week high of $862.79)
  • arrow_forwardAccording to The Economist the firm now “accounts for more than half of every new dollar spent online [in the US]”.
Yes, 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?

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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