Jake Berzon

Why I Remain Short Amazon

I agree that Amazon shares appreciated much too fast from their November 2008 lows and especially with their last leg up to warrant a move down, but I just don't see how it makes sense to short one of the few companies that has what it takes to emerge a winner on the other side of this recession.

Wouldn't it make sense to choose a short target that has poor fundamentals and is making a technical top? That's what some of the more successful short sellers were doing with financials last year.

Will eBay Spin Off PayPal and Skype?

Amazon is winning the game, because they have a key strength that they built up and leveraged to help others sell products. They first help make their clients successful and then benefit from their successes. They also provide excellent customer service. This is the smart way to do business, but it is not an easy route.

On the other hand, eBay has lost their focus and is not either seller or buyer-centric. eBay user experience also suffers, resembling a flea market. This compares to Amazon's Target-like atmosphere. Of course, when prices are comparable, most people tend to choose Target (Amazon) over a flea market (eBay).