I would never buy a mature company like AMZN with a PE of 898. Get real! Bezos cannot justify his valuation through acquisition. This actually makes his business less likable for a price of over $300....
Sentiment: Strong Sell
And with a Big profit increase of 1000%, Amazon will now be judged on PE Ratio, and so AMZN stock will PLUNGE 50%. Because it won't be found to be worth a 100PE Ratio, once its profits go up 1000%. In fact IF Amazon's profits go up 1000%, the stock may even then plunge 75% to 25 PE ratio
I think the media is pumping this stock by recycling news (step into china, internet add etc... which was old news)
I am trying to figure why but honestly I do not have answer
the only thing I know is that this company in big risk
AMZN FCF is nothing but a mirage. Wall street just continues to favor this company's stock because the float is completely controlled !! This stock rarely has a down day. Default direction is up no matter what. AMZN definitely has no pricing power otherwise they would have raised prices on their products and services to have consistent profits. AMZN is trying to squeeze everyone to reach profitability, but that will backfire soon. AMZN will go the way of MSFT shortly and will be dealing with anti trust concerns if they keep up with the strong arm negotiating tactics.
Sentiment: Strong Sell
"So get out while you can at high prices."
Are prices high yet? Shorts told me it was high at $288. Is high more like $450 or $500? When does the recession start?
Vote: Thumbs Down means you think BEZOS is a better clown than Bozos. Thumbs up means you think BOZOS the Clown (formerly on TV) ran a more profitable enterprise.
Its money losing Fire Phone and rest of Amazon's offerings, are sold at razor-thing margins. It has no "raison d'etre" to be in business, other than cut-rate prices, cutting its own nose to spite its face. And constant low selling prices = Low Margins, = NO PROFITS, NO INCREASE IN STOCK-HOLDERS' EQUITY = OPPOSITE OF WHAT WARREN BUFFET COUNSEL's. So get out while you can at high prices. Don't wait till next recession to unload this dog.
" Its a no profits co. year after year, operating on low or no margins."
Almost 20 years, now. How have they stayed in business all this time if what you say is true. And if you can manage to do this for 20 years, why not 40? 200?
" "Shallow Moat" or No Moat."
Tell it to Best Buy who just posted disappointing results everyone attributes to Amazon's huge moat.
"It has NO PRICING POWER"
Tell it Warner who caved to Amazon, and Hachette and Disney who seen many of their product shut out during negociations.
"It makes no money. Revenue growth without profits or positive cash-flow is bad business."
Cashflow from operations was positive last quarter. The $0.27 loss contained $3.25 in non-cash expenses.
Some guy posted calling Amazon a Monopoly? As in Warren Buffett's "Wide-Moat" type preferred businesses to invest in. But AMZN has NO PRICING POWER, its anything but a monopoly. Its a no profits co. year after year, operating on low or no margins. Other than Price Cuttting, Amazon brings nothing to the table.
Where does the $1B come from? Is it dreamed up by shorts? Shorts always seem to know precisely how many of Amazon's other hardware products were built. As soon as a Kindle or Fire tablet sells out they are quick to say, well, after all, only a few thousand were probably built anyway.
So what makes you think that many Fire phones were built to begin with?
Amazon is a company with a "Shallow Moat" or No Moat. It has NO PRICING POWER. It makes no money. Revenue growth without profits or positive cash-flow is bad business. Its total pos. cash-flow since going public in 1996 is less than Apple makes in 1 quarter. In Short AMZN IS STOCK MARKET MIRAGE
Seems like a double standard superficial, but you have to evaluate the quality of earnings. FB is ad based and sharing that space with Google. Amazon is more diversified and in their core online retailing business has no similar rivalry and often attributed monopoly dominance.
FB downgraded today on valuation concerns with a 2015 P/E of 36 on an expected 34% 2015 revenue growth rate.
Amazon, on the other hand is upgraded on valuation with a 177 2015 P/E with a projected 20% revenue growth rate ....
hmmmm .. a bit of a double standard.