Registered: Nov 2005
04-02-12 08:02 AM
Quote from Daal:
Frankly I'm yet to understand you guys AMZN short thesis. PE ratios usually are not important in these momentum tech type stocks
IMO the thing is there's a huge difference in mkt cap size. Something like PKI @ 2766 P/E can see appreciation by simply beating on the top line @ a mkt cap of 3.14B. AMZN's mkt cap is 92.16B, it doesn't seems reasonable that at their profit margin that P/E can be sustained. And unless you expect AMZN to monopolize the internet commerce industry, top line growth is out of the question. Even AAPL doesn't have the lion's share of the handset/computing markets. To sum up: there are size constraints and AMZN is hitting it. Of course, as you and GOC have raised concerns, timing is everything.