understanding Amazon

Discussion in 'Stocks' started by marcoPolo21, Dec 13, 2012.

  1. I use Amazon myself, and like it, but the numbers look bad [PE, EPS etc],
    and I'm mulling taking a bear position [with options only]

    without doing much homework myself,
    I thought someone here might know much more about the company,
    and what is driving this company's stock price.

    Is it simply a much used site, but with a low EPS?

  2. it just occurred to me,
    that maybe the high valuations are simply future earnings potential,
    or the hope for such

  3. technically looking a little weak, lots of upper candle shadows, recent rally on lower volume, at resistance, possible rollover etc.... imho...

  4. In my opinion Amazon is one of the smartest companies around. Nobody do what they do as well.
  5. Pekelo


    I always thought Bezos was an idiot*. If you take away the internet taxbreak, Amazon never made money. And they are STILL building huge and costly distribution centers, when they are basicly just a huge server helping other companies selling their products. (like Ebay)

    Their only huge advantage has been that the entry cost of their business was so big that not many other companies dared to compete. But now that they are just a middleman/website between a buyer and a seller, there is no point having the distro centers, and suddenly competing companies can enter cheaply.

    It is like Netflix, I like them both as a user, but it sure would help if they would start making money (for their shareholders) instead of constant growing...

    * He starts with the idea of selling books online. Of course that didn't work out, so he started to sell anything online. That still is not working that well, so they are now into making electronic gadgets and internet services. Now we could look at it as one who adjusts constantly to what the market dictates/wants, but we can also look at it as lots of failed ideas....

    The best part is that you still can be a billionaire.... :)
  6. they rented a big warehouse near where I live, it is unreal how many employees they have there. They had to build an additional parking lot at the facility for them all. I have no clue how they pack that many people into the warehouse and remain productive, they only rented about 1/3 of the building and then they had the mobile office trailers outside also. They are building a new facility though I believe that is much bigger.
  7. Pekelo


    Back in '95 giving a taxbreak to brand new internet companies made sense to help ecommerce to get a head start. Now it is an unfair advantage. I honestly never understood the business practice of Amazon. The stock price has nothing to do with the company's fundamentals. But eventually reality has to set in, even if it takes decades....

    Those huge warehouses are an unnecessary abominations. Why can't I get the product directly from the maker, why does it have to sit in a warehouse until I click on Buy? (and having it shipped twice??)
  8. The majority of market participants are generally wrong. That's why in reality markets are neither predictive nor efficient/fairly valued. Current price reflects momentum buyers and exhuberance expecting a good qtr. Looks like its waiting for any reasonable reason to break lower. ( I have a put position in amzn)