you really think people will feel save on a road like the LIE just outside NYC in rush hour with self driving cars? Computers malfunction all the time: what kind of crackups will that cause? I don't see those self-drivings cars being adapted anytime soon and I hope they don't. I trust people to drive more than computers.
I say April 30,2014 a the latest.
"Instead it shows a glaring case of waste of company resources and mal investment in frivolous concepts rather than growing the company into profitability"
in the old normal, perhaps we'd get alittle more scrutiny to what's up with AMZN. Now there seems to be a cloudy line to what passes for investigative journalism. As it seemed to me, Charlie Rose was fawning over and promoting Bezos as a feudal lord. They are both in the Bildeberger soceity afterall and the concept fits with what this bull market has been of the 2008 housing debacle: a collusive step by Central Banks to have a wealth effect rally in stock espcially, no matter what the valuation it leads to ,passing wealth up the line to the Jeff Bezos and Charle Roses of the world, at the expense of the rest of Society. Profits be damned, it's all about pumping concepts to the end by the ones in power, FOR the ones in power. It's reached such utter nonsense proportions now.
example of one of the many big pocketed competitors of AMZN. Though one would never know it looking at AMZN's stock performance the last 5 years. Not that easy to snap a finger to get scale and drop it to the bottom line.
it's not AMZN's tax, it's AMZN's collection from the customer tax. Less revenue maybe but doesn't mean less profit as ,we know, AMZN has lost more to the bottom line to gain scale to the topline. So it doesn't necessarily work that way to the profit line.
it also depends on the price they are flushing the inventory out at, along with the cost to get the inventory out at. There's huge inventory this season in the Holidays. AMZN is great at flushing inventory out on deals, but it's on those deals, that take thier margins down where the top dollars are so reduced, that they don't reach the bottom line. Competition is fierce as ever. AMZN's gonna hit the bond market again going foward on the cash bleed ahead in my, and some others, view here. Hype aside.
"our belief that an earnings figure at a certain point in time should matter as much to others is the opposite of the truth. it simply does not."e
that's nonsense. Maybe under an easy money QE regime, but not when the insiders get paid before there's any retained equity. Then it's a glorified ponzi scheme.
Goldman is the gov't basically. Every Central Banks head QEing around the world is an ex-Goldman employee almost. And no Company has benefited more from QE than AMZN.
there's a simpler way to know what net income is for AMZN over it's lifetime: retained earnings: that's the next earnings of AMZN after dividends paid and we know it doesn't pay dividends. It's $4 billion, it's under $2 billion. There lies Bezos genius as he's worth about $50 billion with that 18 year condition. Another thing that's phenomenal into this parabolic is that AMZN traded at about 40 times earnings at the lows of 2008 at 35, and well over a 1000 after running 11 times that low there abouts. So , now to equate to that 40 multiple, AMZN would have to quadruple it's peak earnings ever. Obviously, they can't use a multiple justification with the stock running so high against that kind of measurement. And moving on a parabolic basis. Someone in powerful places ordained Bezos to be worth $50 billion without an earnings multiple. Phenomenal stuff.
"Why don't beezos concentrate on making a dollar profit then spending his time on stupid projects."
bigger question is the oppositie: why should if WS is gonna keep rewarding his loss leading strategy more than a company with built up retained equity? Doesn't make him ever have to and until he does, I don't think he will.
I speak the truth:tell where their peak earnings were greater than $2.52 /yr to this point? You can't. As i said, more power to Bezos to get this much belief without a consistent profit model. Don't change the subject.
obviously, they didn't have enough free cash flow to not have to hit the bond market last year for $3 billion. And it's gonna come again in my view ahead. Bob Olstein does not agree with you that AMZN is operating in a positive free cash flow postiion right now. I think tapping the bond market supports that assertion no matter what you say. Inventores are very high and comptition will be very highs this Holiday. AMZN sells alot of this deal stuff more than high margin stuff for them and they ship it away over cost when the overall operation is added up. People like buying stuff below cost and they provide that, especially for the $79 a year free shipper go into the black against AMZN quickly.
indeed , they made profits a ways back, the peak being $2.52/ over a 4 qtr period: that dwindled toward nothing the past three years to where a quadruple of peak profit ot $2.52, slaps almost 40 multiple on AMZN:in other words, expecatations have never been higher as shown by the parabolic move in the stock sinc the 279 lows of Auguest, yet to get quadrupling profits to it's peak, or even back to $2.52 is elusive at best. AMZN is a loss leader and WS digs that, I'll give you that. It has 20 multiple now to making $20/shr in year some year, decade, millenium going out. Meanwhile Bezos pocket is stufffed with locked in gains. Kudos to him that he has such belief by WS to get this situation that's in the parabolic zone.
nonsense, spending is being extracted from cash flow and capitalized for the most part. AMZN will hit the bond market soon again.
" very long term view."
yeah, like 18 years with sales gains, no profits,ad negative cash flow to extract spending from. Not 5-7 as Bezos says. I'll give you this: it's working here: to the point of a parabolic in process.
Charlie Rose said AMZN is investing their profits in building ot warehouses: that's BS: AMZN doesn't have any profits to reinest: just cash flow: the cash goes to the balance sheet in the form of plant, property, and equipment.,with the hope that efficiences lead to profits; AMZN can make $20/shr someday and have a 20 multiple on that number: No doub t the market is buying this strategy hook line and sinker whether it comes in 5-7 years like Bezos says or 100 years from now. What we do know is topline sales capture hasn't led to bottom line scale period. But as long as the stock reacts positively , Jeff Bezos should never ever show profits and keep keep lowballing when earnings are to come and keep spending. WS buys it. more than ever as shown by the parabolic in process.
for this Country's sake, let's hope that profits come some time; otherwise the economy is being built on a false foundations of companies with little profit backed by huge leveraged up QE Central Banks balance sheet. What i call a leveraged hedge fund economy on stilts. We're there now. It's a not future condition to that. We have it now: !00's of dollar stocks with huge market caps when added up, but almost no earnings. That's a financial paper game.
possibllity? it's 2.50 points from there. stock has entered parabolic mode after the Summer July earnings qtr since the 279 lows in August: a whole new trajectory if you connect the tops going back to 2007-8 now. starting with the 101.10 hit in October 2007, 246.71 in October 2011, and 313.62 in end of July 2013. What's even more impressive, is that it didn't even take proving topline sales gains going to the bottom line, scale earnings, to get this condition. QE certaiinly helps this stock, probably more than any other in the maket. Where is stops on this upside angle now is anyone's guess: one gapup after another lately.
I agree with that Greg Bent: Bezos is the master of publicity at the right time. It doesn't hurt that he gets the media backing to ail as well. Charlie Rose being a fellow Bildeberger for on.