PE = TOO HIGH. What the helll are you talking about? RSI is meaningless when PE multiples are past another solar system. When the market heads down much lower - there will be a wipe out
it still has a p/e of almost 450!!! At this rate, it needs to DOUBLE it's earning for the next 4-5 years...I don't see this happening
With that logic then Apple would be minus -400. You need to find out the percentage of loss you fool, total shares price dollars
??? rode AMZN down from 604-517 ! went down in a hurry..pull the parachute and picked up some more shares of FB on thinking that is similar to your. Quick on the trigger I agree that in this market, you better be fast. It is really nerve racking trying to make money in this market.
Hoping for an AMZN bounce back to 525 so I can load up because that seems like it got some room to run on the downside when analyst start to cut projections/ price targets. FB is a pure bounce trade but something
I don't mind and do encourage as a long hold....watch out for twitter on tuesday.
FB with the whatsapp messenger is going to dominate in the future. Long FB and Canada gov't bonds in Loonie,, 7-10 years from now when it goes back into the cycle when the Us Dollar is weak you'll pick up juiced returns off them bonds. canada as a settler nation will do well long term safe bet for your bond allocation just waiting a little bit more to pull that accumulate button 1.45 cad
Amazon's balance sheets are generally murky, with minimum info, hard to figure out what's going on in profit picture.
Particularly on AWS, where they bundle its cost as capital lease, I am very suspicious on the picture of 25% gross profit margin they are trying to depict. Increasingly large number of cloud companies are not showing prospects of meaningful profit. Without, SaaS, only with IaaS and PaaS, I am very suspicious about AWS' long term gross margin Amazon is claiming.
You are still viewing the market through the "momentum" glasses of the past few years. Momentum investing fad may not return any time soon. FB crushed it, but valuation is still high. Also did you notice that FB slashed spending tremendously last quarter. That helped pad the earnings numbers. also GOOG slashed spending to crush earnings. Both FB and GOOG are totally dependent on the advertising $$. If Ad spending starts to slow down... its not good for either company. CRM...I have always thought there are accounting gimmicks going on there, and NFLX... why are they valued based on subscriber growth vice true earnings? Wall street has this way of focusing on specific numbers other than earnings until that number starts to fade. subscriber growth is slowing at NFLX, so its about to roll over too. AAPL has been hit hard already and it actually has true earnings and trades at a PE of 10. Less than that if you factor in cash holdings. And one thing for sure AAPL will bounce back around product announcement periods. So I would rather start establishing a position in AAPL now for the payoff in the summer/fall timeframe.
Sentiment: Strong Sell
I believe you know why AMZN trades at F P/E of 100, whereas AAPL trades at under 10!
AMZN's business model is completely different from that of AAPL's. If they were to go down that road, why should the market afford them such multiples! WOuld you?
I hope you have the time horizon and the money to afford the wait, which is required in a market where "growth, high multiple" companies are being punished severly.
Just ask yourself where AMZN stock price woul be If we had another similar week? In the 400s?
A Co growing at, so far, 20% with a multiple of 100 leaves no room for hiccups.
I wish you the best and hope you do not too attached to the stock
Lots of money is going into low P/E stocks like AMAG, VZ, and T. AMAG will likely triple this year because their P/E=5 and they have a very solid balance sheet.
I think the 200 institutions that own 80% of the stock have already started to exit. The weekly calls no longer command such high premiums so selling covered calls is not as profitable as it was last year.