The REAL bullish case behind AMZN's amazing growth - and why it will continue to grow!
The days of companies being forced to report profits are OVER. No one cares about profit. The only thing that matters is revenue, and revenue growth. It literally does not matter if AMZN loses 1, 2, 5, 10 billion a quarter as long as they post a revenue gain.
If they lose too much money in a given quarter, they can simply raise capital in a variety of ways. This is no problem for AMZN to do.
Here is an example of how it would work:
AMZN lost 10 billion, so they borrow 10 billion today, and pay back 11 billion two years from now. In theory, the 10 billion from the loan today can even be counted as revenue and revenue growth (the only two things that really matter to investors anyways), and propel this stock up even higher!
AMZN is going to do great things. And I mean great. It is one of the few companies that has sustained a P/E of over 3000. It is such a good company, that I can see it sustaining this multiple for years to come. With the great management team AMZN has, I can see this multiple getting upwards of 10'000 and sustained.
All these pitiful shorts on this board keep complaining that AMZN needs to make profit. Why? Look at the stock price. That is really the only thing that matters more than revenue and revenue growth.
If AMZN stock price keeps going up, and we all buy and hold stock, then who cares about profits? Not I.
AMZN is able, and will continue to be able to break the unwritten rule of the stock market and have its stock price continue to go up without ever making a profit. I mentioned earlier about the great management team this company has. That is the reason why it can and will be done.
I know this all sounds improbable that management can pull this off, but they know exactly what they need to do. I am confident that they will put a lot of money into R&D for new products to sell (at cost, or course - we do not want to actually start generating profits). Ideas such as selling pills that you add water to and put in the microwave to become full meals, flying cars, and anti-gravity machines come to mind. AMZN can probably pull that off. Also, things such as time travel and space warp machines are probable, but much less likely.
Second, AMZN's management is likely to make some amazing discoveries in the animal kingdom. Bigfoot, a Liger, and a Unicorn are most definitely going to join the board of directors some time soon - this should send the company up even further.
Last but not least, AMZN has a trick up it's sleave to make investors forget that it doesn't make any money and will never make any money. It plans to raise the island of atlantis and use that as a headquarters for their operations. This will cause some logistical trouble with shipping, and at first they will have to rely on their flying jet packs for shipping. However, within a few years, AMZN will unveil the world's first teleportation device for shipping directly to a person's home. These teleportation devices will be for sale to anyone, but will be sold exclusively at or below cost as to negate the stigma associated with companies that generate profits.
How can anyone possibly think that this stock will EVER go down?