.....But value or cyclical stocks underperform. So not all asset prices are inflated -- these relationships are complex.
Amazon has been performing well, but you'll notice in the graph I posted that their revenue forecast is starting to come down. This means that analysts don't expect amazon to grow as much. So beyond tapering, if Amazon will grow less --> it deserves a smaller multiple --> also risk to meeting expectations.
Risk is tilted to the downside for Amazon because of those expectations. However, if you have data that shows Amazon may beat forecasts substantially, which would warrant revisions higher, then you can expect the stock to outperform.
