Shabba

Amazon-Sized Craziness

I think the stock is more a reflection of cheap money than the actual fundamentals of the company. I'm short the stock, so I am kind of biased. But this just gets absolutely more and more ridiculous as time goes on.

I like the company, it's a great story and they'll do well but the stock is just totally ridiculous. You have to keep things in perspective by remembering that they earned .45 a share last quarter and that was .15 more than the same quarter last year. And on than news the stock has gone up $45.00 a share on the earnings announcement and the ridiculous pump and dump upgrades that followed.

Stocks to Watch as Market Leadership Changes Hands

I don't understand how investors can justify a PE of over 70 on Amazon. The company is over 10 years old and earnings seem to be growing by about 20%. Some of the other higher fliers like google and apple have PEs roughly half of Amazon. The valuation just seems absolutely ridiculous, even in a great economic climate (which of course we don't have). I am curious if there is some explanation here for the valuation, I really don't know.