Realistically how long can Institutions prop up this price?
don't give me the obvious answer- "As long as they want." It is rediculous to think that this stock can sit here in no mans land forever. The stock can't trade at a P/E for eternity and they show no sign of increasing earnings to reflect the current price. Is it reasonable to think that investors are jumping from AMZN (A company that has ran its course) to Facebook (just beginning its adventure)?
Look at current Scamazon's stock price as a gift from the trading GOD. You don't know exactly when you will cash out, but that day will happen. Time is your friend as long as you have cash to ride out the volatility.
Scamazon cannot win a price war with GOOG because GOOG has a giant piggy bank and has good EPS to refill the piggy bank.
"Scamazon cannot win a price war with GOOG because GOOG has a giant piggy bank and has good EPS to refill the piggy bank." that goes for pretty much all the companies AMZN compete with: AAPL, EBAY, IBM, WMT, GOOG etc you can add to the list: who out of those companies doesn't have deep pockets from making profits and building up big cash piiles? That's why the profit model is important: no just borrrowing money from the bond market that increases liabllities agasint the cash borrowed.
Amazon isn't just fighting Google. It is fighting Apple, Google, WMT, TGT, BBY and all of the content owners. Each will take the fight to Amazon after years of Amazon using their respective areas as a "loss leader"...
it really may come down to "as long as they want" as AMZN is the most loved and supported stock in the stock market: even if Tech pushes the GOOG story of more cash and more earinings, AMZN stock is still trumping GOOG stock in performance. So I suspect that if earnings mean that little in trading AMZN up now for quite awhile: "as long as they want" is the answer.
The problem is that all of AMZN's "performance" is without cause. The institutions cannot deny this and have to realize that it is time to take winnings and find a new growth investment. At this point the P/E can only expand if it stays at the current price given the factors effecting of AMZN's business model (rising bottom dollar, shipping costs, tax lawsuits, new tax laws for on-line retail, rising competition, and completely overextending themselves). Is it so far fetched to think that institutions are covering their positions by secretly buying puts? I look back at Netflix and can't help but notice the similarity in the bubble AMZN is experincing now. It is not, if the bubble will pop but when!