So what is the justification for this stock price?
Again, this is precisely why retail investors will continue pulling money from the market every week, despite why any CNBC pundit says about stocks being a better investment. WS shows on a consistent basis that it isn't willing to do the right thing. It would be one thing if QE raised all valuations, but that isn't what is happening. In fact, the disconnect increases every day and the spread in the risk adjusted return (especially including reinvested dividends) has gotten insane.
"It would be one thing if QE raised all valuations, but that isn't what is happening."
You can say that again! I have been watching with amazement, the past year in general and these last few days/weeks in particular, as Amazon shares and the shares of gold miners go in opposite directions. Gold miners were also "investing in the future" acquiring and building new mines as the price of their product went up for 12 years straight. They also saw expenses rise and profits suffer some as a result of all the spending. But unlike Amazon they have been roundly criticized by the investing community for spending instead of concentrating on near-term FCF and several CEOs have been fired as a result.
I realize these are very different industries but the principles of discounted cash flow valuation and risk/reward ratios are the same. If any industry should be the beneficiary of QE it should be the producers of precious metals, the anti-dollar money. And in fact many miners now trade at price/cash flow multiples of 5 - 7 while Amazon trades at many times that level.
Hanging in for now but have to admit this disconnect is trying my patience.
one is politically correct and the other is not. the government loves when AMZN stock goes up and support it while hating the support of money going into alternative threats to what they consider "real money, dollars, as they print away. So one is politically supported and try to navigate the printed dollars toward while the other is shunned or even shorted to crush long buyers so they won't think of think about the fact that the US is devaluing the dollar. That's part of why gold was confiscated in the 1930's.
you're invested in bear market stocks while there's a raging bull market in others. It's a good chance if the leaders ever entered a bear market, that the dogs you are in become even more of a dog. Remember that.