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14. Amazon doesn't pay a dividend, instead investors who own Amazon try to profit from an increase in the share price. Amazon is a growth

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14. Amazon doesn't pay a dividend, instead investors who own Amazon try to profit from an increase in the share price. Amazon is a "growth stock". But there is risk in owning stock. The Price to Earnings ratio (P/E) is one indictor to look for. Look for Amazon's P/E (TTM) in the first column of the SUMMARY tab under RATIOS/PROFITABILITY. What is the P/E ratio? It was up over 50 the last time I looked. O Under 20 is a typical value for many stocks. More than this means the price is 'expensive' compared to the company's earnings. In this case, shareholders are betting sales will continue to increase and increase! This might be true in Amazon's case!

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