So the news wires picked up the headline as Amazon generating their 'best ever' sales for the season.
I view this as a big disappointment given the multiple the stock is trading at. Investors are expecting huge growth, and if growth is great but not exceptional the stock will get hammered after earnings are released next month.
For a good comp in terms of EPS and forecasted income growth, check out EBAY, then compare stock prices.
I am long put options on AMZN and actually hope the stock goes up over the next month so I can quadruple down before earnings.
For investors bullish on the stock beyond the January earnings call, they must be nervous on 'best ever' sales without any mention of how revenues compared with expectations, which are for massive top line growth.
IF you read bear stearn notes to the investors, it says amazon will have to beat the industry sale growth by 10 point to just meet expectation. the industriy online sale growth for dec. 10 was 33%, amazon is short of 8 point, the PR is clearly a warning of revenue and profit miss.