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Is Amazon growing too fast? Amazon hit the $1 trillion market capitalization mark last year. what...

Is Amazon growing too fast? Amazon hit the $1 trillion market capitalization mark last year. what market capitalization means and why it's important to understand about Amazon?

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No. I do not think that Amazon is growing to fast. Amazon is expanding in many emerging markets like China, Brazil and India and hence its profits are increasing drastically. As more and more people begin to have faith in the company's expansion plans, the stock price rises and this leads to increased market capitalization. So, the market Price to earnings rises and as an when Amazon is able capitalize on these expansions, the prices will look more reasonable and the market capitalization will good good and not overvalued.

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