Yeah, that's important.
I have HES. It had similar situation like PWE last year. One hedge fund actually contacted a lot of share holders to get into boards. At the end this hedge funds got 3 seats and pretty much force HES to sell assets and return value to the share holders by buying back shares and raise dividend. My HES is near doubled this year.
The ex-dividend is coming. Shorts will cover and long will get into if they don't see much downside risk.
The main downside is the tax loss selling.
The company certainly want to buy back at this level as much as possible because it also can save company 5% annual dividend for the shares it acquired from the public.
Bezos wants the hype of air drones. Then wall street can have new hype to play with.
Remember that 3D printer hype, where they are now.
Agree, if AMZN insides believe the company, they will not sell.
Large number of inside high level management are selling in the last 12 months. They know their company valuation is too high. It is a bubble, which will be busted someday.
Short is the way to hedge other long position.
At current price, AMZN is a good short to hedge some value oriented long position.
When market has a big correction, overvalued stocks will go down much more than undervalued stocks.
Analysts keep upgrading AMZN regardless its PE. OK let 's forget about PE now. Just talk about the its operating cash flow. It has around $5B positive cash flow in the last 12 months. Assume it does not do any investment, so, the max income is $5B for whole year, which is still not enough to support $160B market cap company. There are many companies with this market cap can make more than $10B profit even after spending on billions in investment.
Very likely, if some funds take profit, it could nose dive like NFLX