Fire phone gets dropped to a penny to try to boost sales, amazon web payments is being shut down, and their big news is drone delivery that has no chance of succeeding. I love amazon and my prime, but this PE is way ahead of itself. But to be fair, it has been for years... This is nothing new.
Cramer just said to get rid of Amazon and buy BaBa on his show tonight.I was under the impression that Cramer always wanted to "HELP" the little guy, well we just "destroyed" many share holders tonight and "many" are small share holders like me. I'm never going to follow him again "ever" he is just a joker and a phony clown
this ridiculously absurd valuation."
Exactly right they could make 10 times as much and would still need to be growing at 30% after that earning and I don't see that happening. Keep in mind, that would justify TODAY'S valuation, not additional share valuation.
The "R&D" spending, is in my opinion, is not producing particularly innovative solution, and if it were a great value they would not be quote stuffing and manipulating,
Im not missing anything. In fact, heres what I'm NOT missing. This stock cold drop $100 or more and still be fairly valued. You wanna buy it? Great, good luck.
Alibaba CEO states they will expand agressively in the US after the IPO and AMZN is dropping in AH. Theres no volume but it'll be interesting to see premarket action tomorrow. If it starts selling off before the fed announcement, look out... That aint good.
Yes sir, but don't hit these guys with financial facts. I believe they also capitalize other costs which they can do accounting wise but it's quite questionable.
Then you have the free cash flow much of which comes from the employee comp. options and also from the negative cash conversion cycle.
Those are not what I would think of as free cash flow.
Did anyone watch Mad Money with Jim Cramer , he just through Amazon under the bus, Said sell Amazon buy BaBa. who is "he" to say that the one who once hated all of just about two Chinese stocks said Amazon has too much risk
Amazon has not found high margin revenue yet. Amazon logs AWS as 100% margin and lumps sum its cost somewhere in fixed cost like R&D. 30% gross margin is phony and accounting loophole. AWS is razor thing margin you always need "D".
Cramer just through Amazon under the bus. I WILL NEVER FOLLOW HIM AGAIN HE IS JUST A PHONY. !!!!!!!!!!!!!!! CLOWN AND SHOULD BE TAKEN AS SUCH !!!!!!!!!
That is because AMZN put AWS as 100% profit margin revenue. I repeat 100%. Then Amazon lump sums AWS cost somewhere in fixed cost. In fact, AWS cloud business is razor thin revenue unless you actually owns technologies like Google or Microsoft. Amazon's gross margin is still thin. This is questionable accounting practices which should be banned immediately. It misleads lots of investors like you !
Is just one phony, court jester. That's all he is and should be take as "entertainment" ONLY, OR JUST Ignored !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! If you follow his advice you'll end up ??????????? you all out there fill in the blanks.
I agree 100%. Amazon has not found new revenue with higher profit margin. Yet it is valued beyond that of high tech company with high profit margin.
That is an accounting loophole we must point out. The improving gross margin comes from AWS for which AMZN as 100% profit margin by registering AWS cost as fixed cost lump summed. In reality, AWS is lazor thin margin and getting thinner. In other words, improving gross margin of AMZN is phony.
Will take hope in todays price action. Pro's just breath a sigh of relief they are able to dump another 3 million plus without tanking the beast. Hang in there longs trading desks need your support.
May I suggest when you say 'when', please do use it in caps. Coz there is nothing else to debate about coz you do realize the stock is trading at and expecting that WHEN they cut back, they will make $20-$25/share.....and you should know what are the chances they make that...what side of a bet would you like to be on?
When a company is growing top line over 20% at already huge revenue of $90B, it is not the future my friend. This is undervalued in my honest opinion. Should be valued at more of a premium on its revenue. Getting less than $2 per dollar of revenue for Market Cap. Based on its potential future margins, that's very cheap.
If you only focus on the bottom line, you are missing the story. This is a company that continues to grow revenue at an unbelievable rate and is expanding gross margins.
Sentiment: Strong Buy
This IS the future. Nobody doubts they can make a profit. They doubt they can make a profit to support this ridiculously absurd valuation.