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_______
02-11-2015, 10:02 PM
I don't understand the love for this company. At what point do investors stop waiting for them to do something?

Somehow their last quarter was remarkable while GILD disappointed.

Yet any cash on AMZN's balance sheet is coming out of debt issuance. They pay no dividend and buy back no stock with that debt. And on many financial ratios (operating margins, debt/ebita, ebita/interest expense, debt/book capitalization, and others) they are comparable to to junk rated issuers.

I don't have a lot of concern about equities in general but this stock is an argument I don't have an answer for when people talk about a bubble. Yes, they are disruptive and carve out new paradigms. That's just great.

But what actually justifies the price of the stock? Outside of the greater fool.

badcompany
02-11-2015, 11:58 PM
The top line.

Whether right or wrong, Wall St. believes Bezos can flip a switch and turn that revenue into billions of profits.

http://i95.photobucket.com/albums/l142/thinlizzy21/4625D698-96B4-44ED-90A4-612E77FBE15E_zpsh7pn6ch7.png (http://s95.photobucket.com/user/thinlizzy21/media/4625D698-96B4-44ED-90A4-612E77FBE15E_zpsh7pn6ch7.png.html)

reckless
02-12-2015, 05:45 PM
Just a hunch here but whenever that time comes when AMZN announces a profitable quarter, that's when you'll start seeing a drop in stock price.

I don't get this love affair w/Bezos and AMZN either badcompany.

badcompany
02-21-2015, 07:32 PM
Just a hunch here but whenever that time comes when AMZN announces a profitable quarter, that's when you'll start seeing a drop in stock price.

I don't get this love affair w/Bezos and AMZN either badcompany.

This chart does a good job of explaining the valuation.

http://i95.photobucket.com/albums/l142/thinlizzy21/36F2695A-1174-4991-A45E-25FB8E87FC33_zpsssje5zc1.png