Is Amazon cheap?
That's the question that Morgan Stanley analysts posed in their most recent note on the company.
"Over the past decade one recurring investor question has been: How do you value AMZN? Depending on the year and/or where AMZN has been in the investment cycle, answers have varied...including price-to-sales, price-to-GMV, the sum of the parts, EV/EBITDA, EV/EBIT, and others. But with AMZN’s scaling profitability(we think) set to improve even through continued aggressive investment, we think another option is approaching: GAAP EPS. We think this type of bottom-line earnings/multiple support could be particularly important through volatile market periods, such as the one we are currently going through," the analysts wrote.
Amazon is a holding in Action Alerts PLUS. Curious about what Jim Cramer and his team at Action Alerts PLUS are watching in the markets? Watch Cramer's exclusive members-only Daily Rundown show on Action Alerts PLUS following TheStreet Live.