Amazon's P/E ratio is hitting levels close to Buffett's golden zone.
But real talk — do you actually understand what P/E ratio means?
Most retail just looks at the number without context. Here's what matters:
→ P/E shows how much you're paying per dollar of earnings
→ Low P/E can mean value OR a dying business
→ High P/E can mean growth OR overvaluation
Buffett's sweet spot? Usually 15-20x for quality companies with moats.
Amazon sitting near that range now after years of trading at nosebleed multiples.
Question is: are we looking at a rotation into value plays, or is big tech finally fairly priced?
Either way, understanding valuation metrics separates investors from gamblers.
What's your take on AMZN here?