Serious question: how could anyone ever think AMZN could crash with so much love and support?
it used to eve get more scrutinized to a high multiple somewhat but it now trades up without ANY EARNINGS SCRUTINY. Doesn't that prove that the love and support of the stock has reached a whole new level? Especially in the face of the weakness in what was the king: AAPL. Isn't that amazing?
All the "love" tied to one metric - sales growth. When sales growth wanes love will wain - happens to every stock in the market (mind you could happen earlier in amzn's case because of outsized run on misalligned investment). Right now they are look at top line growth of 20-35% so out performing better than market. Watershed moment coming soon for amzn as competition is getting more fierce this Q and will only see market share losses in 2013.
I think the enigma on that sales growth is that while AMZN has grown that, earnings decreased to capture that sales growth: The bullish theme by now that scale sales would drop to the bottom line and it just hasn't happened. In other words, WS continues to reward AMZN giving things away. Monetizing sales hasn't not proved to be as easy as anlaysts promotoed it to be.
Serious answer: You will wake up one morning to find that the fundamental economics of Amazon's business model have forever changed for the worse. And, it will not be recoverable. Will it happen today, this month, or even this year? Maybe not. But, I will be around when it does...
fair enough: but so far it's the ultimate "Teflon Stock" you gotta admit: Sales tax enforcenet, a drop down in earnings, an economic slowdown: these were all reasons given to bring AMZN down , even for a period of time, but the stock has rallied though all of it pretty much the whole year:: from 167 to 245 area: that's an impressive peformance with those supposed headwinds. Maybe you get a chance for some kind of correction after the 167 low becomes a year old, and gains can be locked in from those Dec '11 lows at a lower tax bracket. We'll see. Rock solid nevertheless.
Tech Strategy, but if iyts not in immediate futures its of no use, because everybody knows that this company doesn't earn any profits and its fully bloated. The moot point over here is 7th day in a row this stock with $ 25 one side up? whether market is up or down it doesn't care. Whats cooking up????