In the decision of investing in Amazon or Barnes and Noble, I recommend neither. Looking at the present state of both companies, neither displays good, strong expectations of profits. Instead, I see both companies with low projected earnings growth ratios and negative cash flow.
Projected earnings growth rate, also known as the PEG ratio, is a widely used indicator of a stock's potential value. By some, PEG ratio is favored over the price earnings ratio because it accounts for growth.
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