#1 - their cash is overseas, so they cannot use it w/o a massive tax event.
#2: they could use debt, but that is still dilution dummy. Do you think investors don't value the cash in the stock price? There would be zero synergy in this deal to make up for the 300x P/E of Netflix vs. the 12 P/E of apple.
Good luck counting on that. It is not going to happen - name the last large acquisition apple did. The dilution will crush apple stock, and it won't even help their growth much if at all.
That will never happen. AAPL can reproduce NFLX in a couple of months (just like AMZN did) on the cheap - why would they pay $50B for something they can create for less than $1B.
This pig is now within $7 of where she closed prior to that disaster of quarter .. how quickly everyone forgets what a mess this company is in financially.
$102.04 is the Fib retracement resistance prior to the 200dma ($104.58). We see if she bounces off of the 102.04, otherwise you could be right and 104 is in play prior to the weekend.
yeah - because the Chinese will never pirate movies, right?
The Chinese will never pay for Netflix - good luck with that dream.
How do you explain the 65% move since an absolutely terrible Q on every front? It is because it is even more clear now then ever they need capital, and they need it bad very fast. I am not saying they are not a good company, not even saying they might not be a giant. But they are already trading at 7.5x sales, 27x book, and 175x 2016 PE and facing massive share dilution shortly. This thing is priced to perfection for sales 5 years now that may not materialize. Only upside is to hope the over exuberance continues. And that is why I don't short it - because that over exuberance could continue.
You cannot short growth stocks with negative cash flow and a horrible balance sheet. These are the stocks that are controlled by the banks because they need debt and add-on offerings - the most lucrative business for banks. The stocks are propped up by sell-side analysts and trading desk support such that they look healthy at debt time. This is exacerbated by shorts, as they are easy prey to sell low and force to buy back high.
Behind only Apple, Microsoft and Exon Mobile. Less than 3% away from XOM.
Never thought that was possible - AAPL has faster growth, and operating margin of 30.5% vs. 1.7% for AMZN
massively overbought, and this upgrade is not driving volume - while there are no sellers yet (waiting for a top), there are no new buyers available .. only 1.5M shares in the first hour on a huge upgrade to $800. This type of exhaustion will results in a sell off back to Fibonacci levels .. I see 630 over next 4 weeks.
3 things on this upgrade this morning:
(1) this is a rotation upgrade - meant to allow holders that want out some high-priced liquidity today, those who buy today will be bagholders (and short-coverers)
(2) Morgan Stanley is a key underwriter in Amazon debt - this is payback, and payforward for the soon new debt issuance
(3) Morgan has been wrong over and over on Amazon's numbers .. back Jan 2013 they predicted $133B in revenue for 2015 (and they placed a $325 target on that number). Based on current consensus of $107B, they are only off by ~ 25%, and yet the target is raised to $800. No shame.
Remember - it can only go down if institutionals or insiders sell as they own 86% of AMZN - and they never sell. Its been the same holders for more this entire run from 180 4 years ago. The little bit of retail buying each day is what pushes this up against very little sell demand. This stock trades 3M shares a day, or only 0.6% of float. Not exactly liquid, and why the price moves up and up and up with no break. The inside game is to hold it and sell puts as a dividend, and then when AMZN needs capital, upgrade them, and make the commission. Very easy money and controlled by a few led by Jeff and Cap World.
That is a $36B increase in market cap over the past 2.5 weeks. Keep in mind that Amazon over its entire lifetime ( 20 yrs) has generated a grand total of $1.9B in retained earnings! Cash flow over its lifetime is negative.
AMZN has had more than $21B invested in capital and debt over its lifetime and has book value of only $11B presently ... $10B has been destroyed.
Don't be a bagholder .. 10% drop = #$%$ ... AMZN is floating on nothing but a wing and a prayer ...no fundamentals to support the price means huge drop when they show poor growth - Comscore already showed Q3 will be weak for sales at AMZN. Do you want to take that risk with such large gains already for the year?