Lehman estimates that eBay makes $1.75 this year and Amazon $1.55 or 13% less. Yet Amazon stock is $76 vs. $23 for eBay. And eBay is not expensive by all means. Applying eBay valuation to Amazon we come up to $20. Given Amazon faster revenue growth we can apply 30%-50% premium to the stock. It gives us $26-$30 a share. So $76 is insane. I believe AMZN is heading to $30!
No I don't. 1. I've been around and watched Intel, CSCO, MSFT, AAPL, QCOM, GOOG and others growing. They used to blow out increased analyst estimates. 2. Your arguments shows your complete state of denial, stupidity and ignorance. The estimates go down due to the rising dollar. The analysts have to factor it in. It lowers Amazon revenue, profits and margins and increases the multiples. 3. Look at the Amazon chart. It is broken! Amazon is likely either drive estimates down or miss badly. Currency exchange just one of the factors. Slow domestic and especially global economies are killing the sales, especially more profitable expensive items. That is why the stock is under the heavy distribution. In a few day you will be able to buy twice more shares for the same amount of money.