Very simple: Wall Street Gangsters.
They decide what happens to stocks, not us.
Go with the flow and watch the tone of headlines - they will be your cue.
Look at GE and HON price action: both beat and both warned about Europe. Actually GE beat EPS and Rev but HON missed Rev.
Look at Pepsi: missed on Rev and even EPS outloo is lower than estimates by 5% - well you know where the stock is headed!
Just watch similar companies and read the articles carefully - you will notice which is being supported and which one is being bashed.
Forget the fundamentsls, follow the WS gangsters
i agree with you that amzn is absurdly over-valued and i've asked myself how could a rational investor buy at this level. that being said, amzn has a few things going for it:
1) strong global brand that is trusted
2) incredible rev... they did 61b last year and, while rev growth is slowing, they will likely continue to grow rev. if they can figure out a way to squeeze a few more % points out, they could turn some nice profits. i doubt they can as customers will likely leave in the face of higher prices, but that's my opinion.
3) they created some incredible businesses... most recently aws, kindle...
does this merit $150... i don't think so and i guess the stock will crack this year... i only hope to have a boat load of puts when they do.
question for you ex: what do you think will cause the stock to crack... and when do you guess it will happen?
Skiidady, will you explain why this stock is cheap? Do you accept the "Challenge"? Looks like your Intuitive Surgical took a big dump last week. That surgery robot they have makes mistakes, apparently. How many CMG calls did you have?