tic? I am not a long or a short. I just heard there was a battle going on about AMZN. Lots of talk lately as to whether they can turn a profit. I think they can. But, my problem is once they make a profit then you have to consider P/E. Because you have to compare them somehow! Do the math, AMZN is overvalued. Let's look at it this way. AMZN is happy because they made $1,315,000,000 in revenues in the last 9 months. WMT (this is brick and mortar) made $3,660,000,000 IN EARNINGS in the last 9 months!! In other words, WMT could have bought all the products AMZN sold with their profits three times over! If you think WMT isn't gonna eat some of AMZN cake you got another thing coming. WMT has enough cash to cut prices to bare bone to get market share when the time is right. We have to be realistic AMZN may be huge someday, but they are on a tier below some of their competitors right now in the overall retail sector. WMT could prove to be the immovable object that somehow beats the irresistable force. These are just my opinions.
I think it is interesting the only two posters who chimed in response to the previous post in are a current and a past Wal-Mart stalwart.
I don't find Amazon over-valued. Not when I consider how much growth potential is there both in product categories and online market share.
If you were really convinced in your own cock and bull story about valuations you'd load the boat on a short position instead of yapping from the sidelines. Your doubts (in taking that position) prove to me the bullish arguement that the skeptics don't really know what they are talking about.
If you don't like the valuations, that is no problem. Just go away. You are not needed.
I am convinced that AMZN is overvalued but I don't believe in shorting stocks(it's a philisophical question with me). In addition, just because a stock is overvalued doesn't mean the price will go down in the near term. I'm talking about long term(years, not months). In the near term the stock could very well go up. But, I appreciate your great information packed reply. (that's called sarcasm by the way). You know, you may not agree with me but that's no reason to be insulting. I do find it interesting (and frankly quite scary) that people like can choose to ignore all the fundamentals. Don't get me wrong I have stock in companies that are overvalued, but their earnings are growing and they have patentable products(which is a good point someone else here brought up). Companies with patentable products are much more difficult to displace from a position of power, I think. Once again, these are just my opinions.
have to put all his "editing" skills to work to spin your post. You point out that WMT could have easily bought everything AMZN sold last year with it's profits alone 3 times over. Nemesis will have to dig deep to spin this issue. Also, you say that you're pretty sure AMZN will in fact become profitable but even so, if you read my last post to nem you will see that even with generous profits, AMZN is still a $30 stock years out from now. Overexhuberance rules the day for shareholders like Nem.