NEW YORK ( TheStreet) -- In practice, valuation -- particularly the P/E ratio -- no longer means much. If it did, Apple (AAPL - Get Report) would not wallow at a forward P/E of 10.27, while Amazon.com (AMZN - Get Report) sports a robust 88.34 on the same metric. Using Tuesday's closing prices, Apple's current P/E stands at a puny 13.48 relative to Amazon's inflated 185.29.Unlike Apple bulls and Amazon bears, I pull only one point of significance out of those otherwise meaningless numbers: This is not your Grandfather's stock market. And it has not been for quite some time.
Sell Apple, Buy Amazon
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
Every recommendation goes through 3 layers of intense scrutinyquantitative, fundamental and technical analysisto maximize profit potential and minimize risk.
Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.