AMZN has a PE of 3000. Yet Appl and Goog are very low in PE.
What is the difference here?
Am I loseing something in this translation??
Both Appl and Goog have a small amount of stock outstanding. But the MM'S continue to crucify money making stocks with a great future!
If I was able I would short Amzn and buy Appl and Goog but I can't.
Not enough of cash.
Sometime in the future Amazon will have its day of reckoning but the timing will not be easiy timed so as to make a bundle for those who are short. Until then they will sing the praises of Bezos and weave a tale of some future grotwh that will somehow materialize out of thin air.
Make no mistake this is a flawed model that can never catch up to the absurd valuation. It will all come out with the wash but maybe later than sooner.
Yes but AMZN's forward PE is only something like 156. After this year, you only have to hold it for 156 years instead of 3000 to get your money back. It reminds me of EDS stock in the 1970's.
I will sell AMZN OTM calls as soon as market open tomorrow.. when music stops, most investors won't have a chair to sit down.. AMZN is over manipulated for this long.. it is time to butcher this hog..
People are never buying a stock for where it is now. Well maybe income investors with stocks with long histories, but people investing in Goog, Aapl, and Amzn are investing for where they will be tomorrow, or two years from now. Amazon has redefined the way people shop. It has a real chance to disrupt companies like Visa and MC. It already put retail book sellers out of business and is in the process of putting Best Buy out of business It is spreading distribution centers around the world to raise margins. It doesnt really have any long term competition and if there is competition on the horizon they havent shown up yet. With that kind of growth valuing it is a lot different than just looking at the numbers. Eventually the expenses will drop as expansion ends, margins will improve and Amazon can go about figuring out how to best capitalize on its position. If it can figure out a way to get rid of Visa and MC as the middle men profits will skyrocket. With revenue about 40% of Apple at one quarter the size and no end of growth in sight...well you do the math.
It is worse than you think. Amazon clearly missed expectations on the top and bottom lines. The stock soared and because it did it is now being written that Amazon actually beat expectations and had a great Q. Talking heads are saying that it was the improved margin(barely 2 %) that caused the stock to soar. Some have even said that J. Bezo's is the new Steve Jobs because he is the new Innovator. Innovator? The only thing I see him innovate is a company that can get investors to reward it for increasing Revs with no regard whatsoever for profits.(what an insult to SJ who was never cut any slack for NOt growing real earnings)