Honesty is when someone tells you something you don't want to hear. It sounds like you want an analyst to tell you Amazon is a ponzi scheme that is about to crash. Since you already know that, an analyst who says that is useless for you.
Although I am long AMZN, your concerns have some merit. During the last quarter, Amazon's expenses grew faster than revenue. Obviously, that cannot be sustained long. Amazon's stock price places quite on those earnings and revenues as well. Finally, the stock price has doubled since 7/7/2010, while revenues increased only 41% and earnings about 27%.
You are, however, overlooking several key facts. 1)The earnings report was for the 2nd quarter and retailing generally does poorly during the 2nd quarter and makes it money during the 4th quarter. So the cost increases may be seen as preparation for 4th quarter. 2) Amazons earnings of $0.41 / share exceeded analysts expectations by 0.11/share and it revenue growth blew away expectations. 3) Amazons year over year growth has been running 27% but these revenues and earnings suggest that growth rate may be accelerating.
So here is my assessment. There is about an 80% probability that AMZN is over priced at the moment. If it is overvalued, there is an equal probability of the price moving sideways and of the price falling. So the shorts have 40% chance of making money and a 20% probability of losing money. So my recommendation is hold...as a long that means I have a tight stop loss on the stock. Of course...what do I know. Since taking this position on July 7, 2011, I am 4% richer, i.e., my stop loss is 4% higher, so I now wish I had bought more.
Scamazon missed the drastically lowered EPS of 35 cents. Management needed an extra week to cook the books so that non-GAAP EPS can be inflated to 41 cents, giving the illusion of a huge beat. Total revenue beats by a mere 6%.
actually honesty is being truthful, and saying that margins contracted and earnings barely beat the walked down numbers of 34 cents from 66 cents, 11 cents which, was an investment sell to get that 41 cent number. that's pathetic. not extolling the virtues of pumpanomics. honesty is someone on TV telling the public that AMZN has it's earnings walked down into most earnings reports so they can play "beat the number" when , indeed, they didn't . Bubbles are formed from these repeated actions.