Of course your right, but the problem is that it could take years (or just days) to play out in this environment of easy money to support these Ponzi schemes. We just don't know. There is usually no prior indicator of when it happens, because one morning you wake up and a large shareholder decides to take its profit and then it collapses by 90% over just a couple of months as everyone runs for the exit, with no bottom support of profits or cash flow..
Wow - I have heard every reason in the book to upgrade AMZN .. but valuation??? that is a first ... stock is up 65% this year, and now Evercore feels it is undervalued .. good timing on the advice idiot.
Unlike other high fliers, they are in great financial shape and growing fast with awesome cash flow ... this is the type of company you want to hold when the dust settles. It will bounce back, as fundamentals are on its side for the long haul.
NO interest in the 9th largest company in the S&P500? One fund gets out, and look out below - zero liquidity.
Boy are you wrong. NFLX will go the way of AOL .. initial pioneer who gets lapped by better technology. No one discusses this, but AAPL will be the one to crush NFLX. NFLX is a simple distribution model with not enough capital to drive significant enough content - or Live TV. AAPL will have a major announcement surrounding Apple TV which will truly drive cord cutting as it partners with content providers to stream live TV combined with "on-demand" in a simple and elegant concept.
Yes - down to 30c for all of 2016 .. they have been lowered so far, that it will be impossible to miss. 18 month forward P/E of 380 now.
$9B in net capital invested, $9B in debt invested ... $1.9B in retained earnings over 20 years. A whopping 0.5% ROIC
AMZN has $8.3B in debt. Current ratio is a dangerous 1.1 with downside coming, as Q2 and Q3 are always a cash flow drain.