P/E Ratio Insights for Amazon.com - Amazon.com (NASDAQ:AMZN)

Core Viewpoint - Amazon.com Inc. has shown a stock price increase of 2.74% in the current session, with a 0.78% increase over the past month and a significant 20.42% increase over the past year, leading to optimism among long-term shareholders, although concerns about potential overvaluation based on the price-to-earnings (P/E) ratio are present [1]. Group 1: Stock Performance - The current trading price of Amazon.com Inc. is $222.42, reflecting a 2.74% increase [1]. - Over the past month, the stock has increased by 0.78%, and over the past year, it has risen by 20.42% [1]. Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for long-term shareholders to evaluate the company's market performance against historical earnings and industry standards [5]. - Amazon.com Inc. has a P/E ratio of 33.0, which is lower than the aggregate P/E ratio of 40.94 in the Broadline Retail industry, suggesting that shareholders may perceive the stock as potentially underperforming compared to its peers or undervalued [6]. - A lower P/E ratio can indicate that shareholders do not expect future growth, but it may also suggest undervaluation [9]. Group 3: Investment Considerations - The P/E ratio should not be used in isolation; it is essential to consider other financial metrics and qualitative factors, such as industry trends and business cycles, to make informed investment decisions [9].