Amazon is a growth stock that is promising to be huge and *one day* make a ton of money. But that's the rub, Amazon is growing by spending everything it take in leaving nothing for profits. The question is: is that a good investment of funds? If it is, then down the road (1, 2, 5, 10yrs?), Amazon should be making tons of profit for its shareholders. On the other hand, if it needs to keep spending like this just to keep growing an undercutting the competition, then this is just Jeff Bezo's hobby, and shareholders are just funding his fun. I'm sitting it out as I think all companies of this size owe their shareholders some decent return, even if it means slowing growth, or raising prices slightly. Its too easy to just keep growing, but never making a dime. What happens to the stock if the growth falters? 50% drop? A true traders stock to play the market.
Couldn't agree more. Plus the huge issue of taxes removing cost advantage with brick and mortars, and the fact that a number of cash rich competitors may steal cloud business. Anyone buying Amazon is certifiably insane imho.