I love the way people change reality by using language to obscure. The supposed "loans" to be made to Chinese Companies should really read bribes or cost of doing business. That is the way it's done in China.
They are FOS. I have a friend who does business by filming certain things from drones. He knows that this Amazon story is a Fairytale. Bezos in Space Bezos piloting Drones yadayadayada. More like Bezos with a kidney stone in the Galapagos...
Let's get one thing straight. The idea that there will be drones flying all around delivering little packages in any volume on the cheap, is ridiculous. The lawsuits from injuries, the number getting wacked out, the amount stolen, etc., makes this idea a Fairyland. What you might have is a few stations in very rural areas delivering a minuscule percentage of stuff, as to make this concept a JOKE financially. This is simply the typical pumping of Amazon as a cool progressive far sighted stock, instead of a scattered conglomerate, with a solid retail concept with serious competition for low margin business. AWS will have incredible competition, similar to the Storage story. The chickens eventually come home to roost.
Fundamentals eventually matter. if you are playing the options game, then i would agree with you, but if you are an investor in this stock, one day fundamentals will become ascendant. It's only a matter of time. In the 70's fundamentals didn't matter for the reverse reason, and many stocks were undervalued. There will always be a regression to the mean, unless the System implodes.
As predicted, the Cloud is on its way to a "Race to Zero". All the analysts who have pumped this stock based on future earnings from the Cloud, need to rethink their hopes, unless their pumping was just the usual momentary attempt at propping up the stock price. The competition here will be fierce, and profits will be meagre.
AWS is the leader now. This will become a commoditized business just like SSD's. Analysts just overlook the fact that their overall revenue in that space was a disappointment. But no worries, IBM Microsoft Google etal will just stop competing in this space....Lots of luck
They are running the Asylum. MINUS 12 cents are considered Strong earnings. Bezos has given you his formula, and he doesn't deviate. They cannot make more than a minimal profit, which by manipulating inflows and outflows, he can show a small profit certain quarters. The other quarters, he pushes some new idea, like getting into Travel, so that the losses and borrowings can be excused. AWS is for real, but the competition will be fierce and the returns paltry. Think commoditized similar to SSD's. As for Drones, what planet is he living on? They would be picked off here like flies, and the first lawsuit from someone getting trashed by one, would be the end.
1] They can't make money
2] They haven't announced their babysitting service yet.