...and AMD warned yesterday based on a weaker consumer...yep, this entire market is being driven by Fed POMOs with cash headed for the most over valued stocks....Al Qaeda could not have done a better job in ruining the U.S.
Do Ben and those other idiots inside the Beltway actually think the American public will fall for this market ramp job?
Folks I talk to look at this and just speed up their mutual fund withdrawls. They know by looking around them what shape the economy is in and then they see this sort of crazy market action is happening and they instinctively know a scam is unfolding.
Jet Propulsion Laboratory will hand out pink slips to 2% of work force next week. One of JPL's major customer is NASA. Hey, perhaps they will work for Bozo the Clown...who has cashed about $1B worth of AMZN stocks over the last 18 months. Will work for food!
I'm personally going to unload a bunch of MFs when the DOW hits + 11K...sell when there is euphoria in Wall Street. Sell harder when there is divergence between price and fundamental. Meanwhile, sit back and enjoy life. You're one day closer to death.
obviously the market knows something we dont, whether its the kindle or buying barnes and noble or structural change with incredible growth of the internet the next three years and on. Karen Finerman has been dead wrong on this one.
Well, the moral of the story is that the market cares more about the future prospects of the company than a single quarterly data point.
Also, in terms of momentum summer is typically a slower season for retailers like Amazon and the stock is often typically low compared to 3Q and esp. 4Q where they do half their business for the year.
This would hold true for any retailer and even more so for Amazon. If you were a short-term short you would want to close your position at the end of summer and in this case at $105.
"little year over year earnings growth."
The growth rate excluding the expenses due to the Target settlement from 2Q09 was twice that of Target (including those proceeds), so hardly "little".
Amazon is a fairly mature company with an enormous market cap. They have a little bit of cash and moderate growth. There are many dozens of growth companies with as much or more growth, as much cash and free cash flow, no debt, and that have much higher margins and smaller market caps than Amazon and trade at P/Es from 10-15. Right now Amazon and Apple are being pushed up by the arbs as a proxy for all the stock market indexes. They figure if these stocks can be pushed up that buyers will come in and buy or cover everything else. At end of the quarter these arbs will get out and push up much cheaper stocks to the end of the year.