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Amazon's Short Term View

|Includes:Amazon.com, Inc. (AMZN)

Amazon shares are down 38 dollars after second quarter losses mounted to 126 million.Revenue grew 23% so all news wasn't bad.They trotted out the mantra of we are in it for the long term,but when will investors stop buying that line of reasoning ? They have a great vision for the future and business is booming in a lot of areas.Eventually they must raise their profit margin in order to back up these grand versions of the future.The irrational exuberance of stock valuations can only last for so long until Investors tire of the vision game.I am not predicting drops of 50 % but Amazon does need to concentrate on the short term view much more than they do now.Wall Street is known to tire of a stock if the theme becomes old.In the Short Term profit margin can be the rallying cry for a brighter future.Time to change the recording.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stocks: AMZN