But a much more basic question is, WHY DO YOU CARE WHAT SHORTS HAVE TO SAY?
My guess: You are one of the fund men who has to buy those shorted shares for real cash, and then hope and pray you can continuing the collective-fund pump up job so as to get that self-same short seller to cover some day. Yup, it's all a game, and there are not many playing it left.
and the stock has been going up for the last six quarters from 105 to 173.
Meanwhile people like you bellyaching about the PE have been shorting for the last six quarters when AMZN was trading at 105 to now. So how's that been working for you? Hmmmm?
"The stock trades at almost the highest multiple in its field and can't bring it down (PE, again).."
Huh? What does that have to do with anything. The same people buying Walmart stock are not the same people buying Amazon stock.
"it goes from 190 to 170 in a day and you ask how does it help shorts?"
No, it goes from 35 to 190. It just went from 167 Friday to 175 recently how did that help shorts? They lost 8 instead of 9. Is that how it helped them?
Like it or hate it, it's a FACT.
PE isn't just going to shrink when earnings go up. The dude was wrong when he said that. I gave an excellent example of a situation in which PE would go up while current earnings remained the same. PE contains embedded assumptions about growth. Those assumptions change. We can have discussions about what the growth catalysts are for AMZN, whether the market is over and undervaluing them etc. But PE is the beginning, not the end of the discussion.
I'm not a MM and have no position in this thing, but shorting simply based on a high PE without doing the homework is absurd.
Shorting AMZN because the quarter "was terrible" is absurd.
future growth? i hope you are on east coast...coz its late there..and nothing wrong with getting high late at night....future growth???? you mean the next millennium? the company is struggling to sustain its growth now...people like you have been saying growth growth (kinda like wolf wolf) the last 6 Qs....companies that are growing fast cut their PEs in half at least in a year...but..enough said..and keep buying...if it pulls back...LOAD up..please
"So how does it help shorts? It doesn't. They still lose money"...you just won being the dumbest person of the day award...at least you won!!
The stock trades at almost the highest multiple in its field and can't bring it down (PE, again)..just doesn't seem to get cheaper and you ask how does it help shorts? it goes from 190 to 170 in a day and you ask how does it help shorts?
keep on the same track and you might just win the biggest award of em all...surprise ;)
"And PE doesn't necessarily shrink if the company is growing."
Yes, it was stupidity like this that lost timber $1 million last quarter. And since he still believes such inanity he'll keep repeating history and lose $millions more.