Why does Apple (AAPL) have a forward P/E of 10 while Amazon (AMZN) has a forward P/E of 100? The...

|About: Apple Inc. (AAPL)|By:, SA News Editor

Why does Apple (AAPL) have a forward P/E of 10 while Amazon (AMZN) has a forward P/E of 100? The reason, as Barron's points out, is "the perception of absolute control at Amazon." Amazon is a company that could generate billions more in annual profits if it didn't invest at a breakneck pace on new warehouses, streaming rights, subsidized hardware, and much else. Thus, Amazon bulls are content to focus on its share gains and healthy gross margin. But if Jeff Bezos plans to put a lid on spending, he isn't tipping his hand.