wobatus

Amazon Is Overhyped and Overpriced

I love the fact I got 2 negative recs for saying it is a great company, I think it is too pricey at these levels, but also dangerous to short. People must have thought I was too wishy-washy. Oh well, down a few percent since I posted that. Keep up the good work, Lonely.


On Dec 08 11:18 AM wobatus wrote:

> Agreed, Lonely. Armistead is right too. It may be overvalued but
> that doesn't mean short at will. And if folks don't like EBAY, not
> much not to like about COSTCO. Amazon is a great company, but I'd
> avoid the stock at these levels.

Amazon Is Overhyped and Overpriced

Agreed, Lonely. Armistead is right too. It may be overvalued but that doesn't mean short at will. And if folks don't like EBAY, not much not to like about COSTCO. Amazon is a great company, but I'd avoid the stock at these levels.

How to Value Amazon?

I don't think you could replicate and top Amazon for $3 billion. I don't pretend to know why its valuation is so high and going higher, other than it is a short-killing machine and they are definitely some of the buyers these days. A lot of the float is locked up in friendly hands.

That said, someone else here mentioned they don't buy bricks and mortar any more and just on-line. I don't go that far and do plenty of shopping at stores (mostly via the mrs.). However, every xmas, I do almost all that shopping at Amazon. Cheap and easy, they have all my relatives' and friends' addresses, know what I have bought them before, etc. A lot of last minute birthday gifts too.

One stop shopping. It's easy.


On Oct 26 07:36 AM logicalthought wrote:

> AMZN has continued to amaze me in that it has nothing truly proprietary
> (not even the Kindle) and is essentially just an extremely well-designed
> web site backed by fulfillment warehouses. In theory, one could replicate
> the entire company (currently valued at around $50 billion) for,
> say, $3 billion, consisting of $1 billion to replicate the web site
> and warehouses and $2 billion for an absolutely ubiquitous ad campaign
> to build instant name recognition. Requiring, then, a return on just
> $3 billion of invested capital (vs. AMZN's $50 billion valuation),
> one could then theoretically underprice AMZN on just about everything,
> and therefore massively steal its market share. I don't understand
> why no one has ever done this, so meanwhile, lol, I continue to shop
> at Amazon.