Seeking Alpha
  • Rubenov
    AMZN continues its freefall. I don't get why now and not after their earnings report, if its high PE is to blame.
    12/29/11
    Reply (19)
    • Rubenov: It bounced well after it was clear it was an inflated stock, and a month after people are realizing it? Frustrating.
      12/29/11
    • shaker33: You got it. Overpriced with razor thin margins and it appears volume not as robust as expected.
      12/29/11
    • gnuman: I'm sure with Kindle Fire and it's media offerings/ebooks it will help margins a bit.
      12/29/11
    • shaker33: The fire is being sold at cost.
      12/29/11
    • gnuman: It's a good way to get it in the hands of consumers. I'm sure the Nook wasn't making any money either but $AMZN does have a lot to offer...
      12/29/11
    • Husky Financial: P/E compression on all momos..its been happening since TZOO got taken out to the woodshed in July/Aug but look at all momo charts since then
      12/29/11
    • shaker33: G, I like AMZN as a company, just think the stock is priced to perfection. They are a retail killer.
      12/29/11
    • Rubenov: AMZN is one of the best companies out there. I think its stock is one of the worst. Two different things.
      12/29/11
    • 0ZJ: shaker33: As far as I know, AMZN has never confirmed that and it's evident the various teardown sites aren't particularly reliable...
      12/29/11
    • 0ZJ: ...A teardown of the BB Playbook and the Fire 6 months apart report a nearly identical bill of materials even though the Playbook is...
      12/29/11
    • 0ZJ: ...twice the device in many way. Clearly the teardown guys are hardly the last word or particularly consistent/reliable.
      12/29/11
    • shaker33: OZ, like I said, I like AMZN as a co. margins are so thin that they can't have any dip in volume or #'s will miss.
      12/29/11
    • User 509088: it's like farmers picking apples. they go from one to the next of these fad stocks and squeeze the juice, panic ensues.
      12/29/11
    • pistol495: Isnt this strictly a play on the increasing % of shoppers puchasing online? There is nothing else to analyze. What am I a missing?
      12/29/11
    • gnuman: I just noticed something disturbing about AMZN. Look at the 5 year chart, it will breach the lower support levels.
      12/29/11
    • Husky Financial: no there are other ways to play online shopping/usage than AMZN. the problem w/ AMZN is a) the growth is already priced in very much so b)
      12/29/11
    • Husky Financial: their margins are razor thin. you can make 1% off a trillion dollars or you can be like apple and make 40% off of 25 billion
      12/29/11
    • gnuman: Problem is techs know $AAPL products are overpriced and are going for an experience like people who buy yoga pants at $LULU...
      12/29/11
    • Husky Financial: I agree with you. my comment wasnt a bearish one on Apple. I am saying that slim margins means that all growth has to essentially be organic
      12/29/11