Alibaba may be falsifying their earnings just like many many other
American investors should refuse to get involved In Alibaba until
China pays American investors back what their companies have
stolen from us!
Instead no one will do anything about the fraud; not China, not
even our worthless SEC.
We shall see .... time has proven me right so far .. 4 years of investments and counting, and still no return. + $3B of new debt w/ a current ratio
You must only substitute xxx through the right letters.
nemesis, to add to your point... is it sustainable to think that anyone will actually travel to a brick and mortar store in years to come when you can order online from amazon and have the product delivered in a day? u gotta be an idiot to not understand why amazon is priced at this high multiple
"But is it sustainable?"
You're asking the wrong question. It should be instead to shorts genuinely think their assertion that Amazon will always have no profits is sustainable? I know some like to cherry pick certain select data points and ignore others to suit the narrative they'd like to see happen. But not sure they actually believe it.
FB was downgraded because they face more direct competition (Google) for ad revenue and advertising is has a smaller global revenue market than retail, so a more limited upside. A smaller pie to share.
It has nothing to do with "financial shape". Amazon's finances are just fine. Your problem is that you don't understand what the word "current" means in "current assets" or "current liabilities".
If earnings are zero or less the PE is infinity or undefined.
The market cap of 150 B with no profits seems to be quite possible. At least on this planet. But is it sustainable?
"If, for example, I take BKS and use their average profit from inception until"
This should have been:
If, for example, I take BKS and use their average profit from inception until
For a retailer, book value essentially measures how many stores you might have and how much inventory you need to have on hand. The whole point is to have no stores at all, and to turn a smaller inventory faster. So the lower the book value up to a point, the more efficient you are. Book value is never going to be high or to be a useful metric to follow.
Average profit is a meaningless metric. If, for example, I take BKS and use their average profit from inception until it would lead an investor then to suppose that in the last 4 years BKS would have posted even larger profits each year. Yet when we check their results, we find that instead, they lost a huge amount of money every single one of those years, totalling $400 million.
Being long an irrational price expansion can be a very good play, and rational play, if executed with cynical detachment. This one was possibly the best ever. The key is avoiding holding the bag when it comes back to earth.
If AMZN can make new highs, and then continue to keep its stock price doubling every 3 or 4 years, it will be a first. And beyond some point, it will be unsustainable.
You are right about it being overpriced but wrong about it never being profitable. The average profit per year since inception is $1.68 per share and it will only take 200 years to realize your full investment if you invest today. How can you resist such a deal?