What’s the Right Price to Pay for Amazon's Stock?

The e-commerce giant’s shares continue to defy gravity even though consistent profit growth has long eluded the company.

On February 9, during the stock market’s early-2016 slump, shares of Amazon.com (symbol AMZN) closed at $482.07. The next day Kiplinger’s recommended Amazon in Best FANG Stocks to Buy Before They Rebound. In just four months since the stock hit bottom, Amazon shares have surged 51%, to $726.64, giving the Internet retailing giant a market capitalization of $343 billion, or 55% more than the market cap of Wal-Mart Stores (WMT), the world’s largest brick-and-mortar chain, even though Wal-Mart’s sales are more than four times greater than Amazon’s.

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Elizabeth Leary
Contributing Editor, Kiplinger's Personal Finance
Elizabeth Leary (née Ody) first joined Kiplinger in 2006 as a reporter, and has held various positions on staff and as a contributor in the years since. Her writing has also appeared in Barron's, BloombergBusinessweek, The Washington Post and other outlets.