The Fed is still going to pump money into the system. AMZN is one of the few safe bets as many startups like Groupon etc will not survive in the next recession. Most money will go to AMZN and GOOG for safety reason.
For hedge, you should short AAPL at the same time.
Just did a calculation. A 1K price would put the market cap among the top companies. You would likely be with AAPL and XOM. So you would have a company like XOM that can generate 40B of free cashflow and you would have AMZN with about 4-5B of cashflow. Seems a little unrealistic unless something drastically changed. Like nobody driving their cars or using any gasoline and everybody on earth buying online with amzn.
Hard to call this a safety play. Even thought LT debt is manageable they seem to have poor current metrics especially with all the a/p and the relatively small amount of current assets to cover it. If a future credit crisis were to occur this company would not be sitting very well in terms of safety. If you look at the projection of a/p for this q/e they will need some type of credit issuance to cover it all. Especially when they are operating with very little profit. They will need to cut cap spending for sure. Better hope they can keep growing without adding more dist warehouses. Or hope the drones will ship much longer distances with much bigger payloads.
I doubt it...and this needs a correction. It's one of the few hi momentum stocks that hasn't yet had a 15% correction or more. Each month this thing inflates the greater chance of that happening. 2014 may well be the year for shorting this pig.