This year could be different. Too many analyst pumping this with predictions of profitability. And even though none of the profit predictions justify the share price the market does not seem to care this year.
that explains yesterday's price action. morgan clients knew the upgrade was coming and bought the initial selloff.
99.5% of the outstanding shares are owned by Bezos and the institutions. until there is a reason for the institutions to sell the share price will not go down.
amzn is controlled by a handful of institutions that have no reason to sell other than to control the profit they make on buying and selling options. it has never been about the fundamentals of amzn itself.
this is all about the market being able to make a nice premium on the options that are sold. it has nothing to do with the fundamentals of amzn. this was a nice earnings report for amzn but hardly worth today's after market move unless it had been trading below $100 to start with.
they are trying to put all other retailers out of business. in the long run this will have a negative impact to customers.
i think the 48 he referred to is the difference between the current price and the exercise price plus the cost of the put.
Exactly. They need this price increase in order to remain competitive with their content offering. By the time the price increase becomes effective in one year it will be apparent that virtually all of the increase is going to higher costs with very little of it going towards increased profitability.