Confused by Amazon’s PE ratio? Financial educator Brian Feroldi breaks down the six stages of a company’s life and reveals why traditional valuation metrics often fail. Learn how to analyze any stock, avoid common mistakes, and discover the tool that makes investing easier for everyone.

[00:01:00] Why PE ratio fails for Amazon and growth stocks.

[00:03:00] The six stages of a company’s business lifecycle explained.

[00:07:00] How to spot startups and hypergrowth companies in the market.

[00:11:00] Self-funding phase: when companies stop needing outside capital.

[00:13:00] Operating leverage: profits grow faster than revenue here.

[00:16:00] Capital return phase: dividends, buybacks, and mature companies.

[00:19:00] Three key numbers to identify a company’s current stage.

[00:26:00] Why Amazon’s valuation needs a different metric approach.

Timestamps are generated by artificial intelligence, and are not 100% accurate depending on the platform used for listening.

Today’s show is sponsored by:

Go to SHOPIFY.COM/beginners to start selling with Shopify today.

Check out the Stock Simplifier here: Stock Simplifier.

What do Dave and Andrew recommend?

Andrew works really hard to find the best insights he can every single month at Value Spotlight. To see a sample of his previous work, go to stockwriteup.com.

Have questions? Send them to [email protected]

SUBSCRIBE TO THE SHOW

Apple | Spotify | YouTube | Amazon | Tunein

For sponsorship inquiries, reach out to us at [email protected].