Great analysts are pumping the stock right now. Great investors are pouring money in. My auntie uses Amazon.com all the time. She even bought some AMZN stock for her IRA. She says she just likes the company. She will be rich when she retires. No, she doesn't know what P/E means. She doesn't care much about dividends.
Oh yea, she had some trouble the last few months paying her credit card balance. But she just tapped her savings. She's not worried about the economy. She shops at Walmart and Amazon and saves money. I was at her house the other day, it was cold. She was trying to save money of course. I think she's doing the best she can to avoid AMZN for a while until the winter is over. She still shops at Walmart though. Everybody does.
PS - I did not tell her that I was shorting AMZN stock, I just advised her to sell it before it drops. She's not worried. (I don't expect her to worry ...yet)
On another note. I voted for Obama because of his calm and cautious demeanor. I really think he is going to improve US foreign policy. But let's get one thing straight. He was sponsored by the big boys to direct the domestic economy through an "orderly bancruptcy" (I'm not just talking about Detroit). The US is going through tough recession times (long economic contraction) and he will make us feel better even though our cars are being towed away and our houses have become smaller. Oh... you have not lost your job yet? don't worry it's going to happen eventually and when it does Obama has unemployment benefits waiting for you You will find another job eventually. Just don't expect the pay to be that great.
AMZN is a feel good story. We impulsively shop online and feel great when we "take it from the white man" without paying sales tax. But slowly people are learning to reduce their spending and AMZN is feelin it now. They would be committing great fraud if they guide earnings up in 2009. Sell Sell Sell