I don't get the love for AMZN. Nobody gets this premium, and all they do is guide lower and miss quarter after quarter. How long does this stay up here in the stratosphere at these unsustainable prices? Even the shorts don't touch AMZN with less the 2% short. Bizaare.
It is like Nasdaq 5000, at the time it made perfect sense for the people buying at that point. It will be same here, the story is that magically when AMZN stops building it's fullfilment centers, it is going to start doing $10 EPS ... fact is each additional revenue that AMZN is making is coming with additional costs, and not because of fullfilment centers. So assumption is when buildout stops profits are going to soar, well emperor has no clothes.
That's a good explanation. But at the end of the day they are still just a retail store, which has traditionally low margins. And of course, when you stop building fulfillment centers... well that's the same time your growth stops. So you have a low margin business that's done growing which becomes a sub 10 PE company. So you're looking at $75/share at that point.
But aren't these fulfillment centers made with brick and mortar and isn't there people working in all of these centers and then from these centers isn't Amazon paying to deliver whatever #$%$ the customer ordered?
Gee, they have some costs even an old school brick and mortar doesn't have. That and said brick and mortars have websites for on-line orders.
It seems like there are lots of similarities in theses companies essentially selling the same stuff.
Why is this valued at a ridiculous premium to all those again?