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Amazon (AMZN +3.8%) surged to new highs ahead of Tuesday's Q4 report: shares are now up 27% from...

Amazon (AMZN +3.8%) surged to new highs ahead of Tuesday's Q4 report: shares are now up 27% from where they stood going into the Q3 report. Solid numbers from eBay, Google, and Overstock have heightened expectations, and so have reports of a decent holiday season. Investors could feel let down if Amazon further delays profit growth for the sake of long-term investments: the Street is now expecting a 65% increase in operating cash flow in 2013 to $10.68/share (per Bloomberg).
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Comments (4)
  • DeepValueLover
    , contributor
    Comments (9761) | Send Message
     
    AMZN has a stock price totally outside the realm of fundamentals.

     

    The slightest bad news will knock $50 off of the share price within the time it takes to log on to your favorite broker and hit "sell".
    25 Jan 2013, 11:22 PM Reply Like
  • sometimes
    , contributor
    Comments (205) | Send Message
     
    Or it will add $50, who knows? I enjoy watching this story develop, with every counterintuitive move to the upside providing what will inevitably be an even more fascinating denouement.

     

    It's an enigma to me why any large (non-index) fund would hold this outrageously valued stock. I bought a couple long-dated put options on Friday, I couldn't resist.
    26 Jan 2013, 11:45 AM Reply Like
  • DeepValueLover
    , contributor
    Comments (9761) | Send Message
     
    Might not be a bad idea to sell AMZN OTM puts (weeklys) to hedge your position and bring your basis down over time.
    26 Jan 2013, 05:02 PM Reply Like
  • BriansGirl
    , contributor
    Comments (99) | Send Message
     
    On any further insane price jumps I will short calls on AMZN.
    26 Jan 2013, 08:28 PM Reply Like
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