In this edition of The Motley Fool's "Ask a Fool" series, Motley Fool analysts Jason Moser and Brendan Mathews take a question from a reader who asks, "Given Amazon's (NASDAQ: AMZN ) huge P/E ratio, how could anyone possibly consider investing in that company?"
While Jason and Brendan both understand the concern over Amazon's P/E, they are both also shareholders of the business and see plenty of reasons for investors to be encouraged about its future. Not only is founder and CEO Jeff Bezos a driven leader who is married to the success of the business, but there are also some nuances to Amazon's business model that aren't fully reflected in the P/E ratio. Amazon's negative cash conversion cycle helps the company fund its own growth, which can be very powerful. And that, along with its loyal and growing customer base, continues to build a strong competitive advantage for Amazon that is going to be difficult for competitors to overcome.
Two stocks changing the retail world
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