facebookDo you think that Amazon share price is overvalued? What do you think is a fair price for it? - Seedly

Anonymous

29 Apr 2020

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Stocks

Do you think that Amazon share price is overvalued? What do you think is a fair price for it?

Why is the price so high? Should I invest?

Discussion (5)

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Colin Lim

29 Apr 2020

Financial Services Consultant at Colin Lim

There is potential growth for Amazon...they have branch out into various category and their potential growth is ernomous... overvalued or not , it depends whether u can stomach based on your risk and budget.

Budget is always a concern as amazon share price is 2000plus....100 shares is already 200,000 plus ....so many will deem it as overvalued.

#planwithcolin​​​

Hi anon, as Jacob has pointed out, the question was discussed in the webinar yesterday. You may want to check it out if you haven't.

Amazon may look overvalued now, but over the long-term, with its growth prospects and strong mangament team (as shared by Ser Jing during the show), it could prove to be cheap. One way to think about it is, "short-term expensive, long-term cheap".

Having said that, the share price can be volatile for such companies, so investors must be able to stomach the volatility that may come with an expensive-looking valuation. If your investing psyche doesn't allow this, it might be better to go for "safer" companies.

Josh Tan Jian Liang

29 Apr 2020

Co-founder https://theastuteparent.com at Promiseland Independent Pte Ltd

Hi Anon,

Amazon has outperformed DJIA significantly at this point of sharing and is undoubtly a wel...

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