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  • Amazon Success Changes The Technology Game [View article]
    "AMZN is now generating profits for the first time in the company's history."

    dp22, AMZN was profitable for a few years at the end of the last decade; it's most profitable year in history was 2010 in which it earned over $2 a share for the year. After 2010 profits took a nose dive culminating in actual losses for a few years.
    Nov 18, 2015. 03:45 PM | 1 Like Like |Link to Comment
  • Even With Higher Margins, Amazon Wouldn't Be Cheap [View article]
    dreadnaught1, very insightful and I believe accurate assessment!
    Nov 9, 2015. 06:29 PM | Likes Like |Link to Comment
  • Amazon rallies to new highs after Druckenmiller praises company's long-term focus [View news story]
    Funny how the street demands increasing quarterly profits on a year over year basis for every other large cap company, but AMZN is allowed to ignore earnings and "focus on long term growth". If Google, Apple, or IBM were to report a quarterly year over year earnings decline because they decided to "focus on long term growth" they would get hammered into oblivion. They're expected to focus on long term growth and make money now at the same time. Why can't AMZN do both as well?
    Nov 4, 2015. 03:04 PM | 7 Likes Like |Link to Comment
  • Amazon Valuation: It's All About The Cash Flow, Stupid [View article]
    PK, they have no choice regarding their CapEx growth. AWS is extremely capital intensive, servers need to be replaced on average every 3 years. As AWS grows, CapEx grows. Then there's the capital equipment associated with their fulfillment centers etc. But the biggest CapEx hog by far is AWS.
    Oct 31, 2015. 01:02 PM | 2 Likes Like |Link to Comment
  • Apple: The Music Will Stop Eventually [View article]
    "Revenue of $51.5b, +22%, was largely in-line with consensus while EPS of $1.96 beat by $0.08."

    Minor detail, revenue would have been over $3 billion higher if not for forex. Even so, Apple's quarter would be considered a monster for any other company; it made more money in the quarter than Google, Microsoft, and Amazon combined. The "music will stop" for Apple one day like it will for every company on Wall St. and every person on earth, but that day is far in the distant future for Apple.
    Oct 28, 2015. 02:17 PM | 18 Likes Like |Link to Comment
  • Apple Earnings: Record Breaking Quarter, Anemic Guidance [View article]
    Mark, I'm surprised, you can't see the forest for the trees. Even if Apple slows to single digit growth for the coming fiscal year, the following year is going to be huge again with the iPhone 7, the second iteration of the AppleWatch, and the next iteration of iPads, Macs, AppleMusic and everything else. Apple always bumps up huge in the non S iPhone years (iPhone 4,5,6). Apple is incredibly undervalued today and will probably remain that way for some time. There's no question now that Apple owns the high end of the smartphone market and the Apple ecosystem is drawing in customers from Android and Windows. The only thing that could hurt Apple would be an enormous collapse of the US or China economy. I don't see that happening any time soon.
    Oct 28, 2015. 10:49 AM | 27 Likes Like |Link to Comment
  • Apple: Why $116-$120 Will Soon Be History [View article]
    J.M., I share your positive sense of Apple, I've owned it now since 2008, but it sure seems that the Market just doesn't agree with us. Apple can't seem to do enough no matter what it does. Apple makes more money than Google, Microsoft, and Amazon combined but while those three companies sell at valuations way above the average of the S&P 500, Apple sells way below the average of the S&P 500. And here we are the day before earnings and Apple is getting hammered while Google, Microsoft, and Amazon continue to rise. I find the market perplexing at times, its very frustrating that Apple doesn't get more recognition for the great company that it is. Hopefully this will turn around soon but I'm beginning to have my doubts.
    Oct 26, 2015. 11:46 AM | 14 Likes Like |Link to Comment
  • Amazon Web Services Adds Upside Despite Stretched Valuations [View article]
    InvestingInvestor, for all its growth AWS does not yet generate a net profit. The operating profit Amazon brags on does not include all costs/expenses. Revenue and revenue growth are positives but not sufficient on their own to label a company great, profits are needed at some point. I'll be a believer when Amazon generates consistent and growing profits to go along with the revenues to justify its lofty stock price. So far it has not been able to sustain significant profitability. If we are to believe the analysts that is about to change, they are predicting that Amazon will earn over $4 a share next year. If Amazon accomplishes this I will be impressed, but past earnings projections for Amazon have been consistently wrong and way too optimistic, we'll see what happens next year. Good luck investing.
    Oct 14, 2015. 10:45 AM | 1 Like Like |Link to Comment
  • Amazon Web Services Adds Upside Despite Stretched Valuations [View article]
    "As such, analysts in the sell-side community anticipate upside to growth and margins, whereas institutional types are banking on Amazon to become that "next" Apple story. "

    Any "institutional type" that really believes that Amazon is going to be the next Apple should be immediately sent to a psychiatrist or fired. This is overstatement and hype beyond the pale, what will they think of next to pump this stock. Amazon will never have the net margins that Apple has, it struggles to attain even 1% net margin. Incredible.
    Oct 13, 2015. 11:07 AM | 6 Likes Like |Link to Comment
  • Apple: The Challenged Ecosystem [View article]
    2puttwo, you're right on all counts. The telecoms screwed up big time and I think they know that by now. By getting off the subscription 2 year plans they opened the door for Apple and Apple jumped right in. The carriers are now going to get what they deserve. Apple's plan is a win win for Apple and consumers, it allows consumers to get a new iPhone every year if they wish and gives them much more flexibility in switching carriers if they wish. Apple sells more phones and makes some more money, good for stock holders. Telecoms lose 2 year locked in consumers and now there will be competition among the telecoms and Apple which will bring down prices. I expect Verizon and AT&T to show reduced earnings next FY as a result of this fiasco. And your right about the many idiot analysts that cover Apple.
    Sep 11, 2015. 11:44 AM | 5 Likes Like |Link to Comment
  • Why Amazon At $500 Is Not Like Apple At $700 [View article]
    "I may wait to sell until they start paying a dividend."

    Dana, I literally choked on my coffee when I read your closing line, now I have to clean my keyboard. You will never sell your Amazon stock if you wait for Amazon to issue a dividend. For Amazon to pay a dividend it would have to have significant positive annual earnings, it now has negative annual earnings, and it would need significant positive free cash flow, it now has significant negative free cash flow (I'm including lease payments). Given the company's earnings history I think it's ludicrous to suggest in any way that dividend payments are even on the distant horizon. My bet is Amazon will never pay a dividend, it may never even have positive free cash flow.
    Sep 9, 2015. 10:36 AM | 27 Likes Like |Link to Comment
  • Amazon's True Intrinsic Value May Never Be Known [View article]
    "Amazon's gross margin recently reached a record high, as the firm continues to focus on profit growth. "

    The way Amazon calculates its gross margin (GM) makes GM a poor measure of Amazon's profitability. Amazon counts its AWS business and its 3P business at 100% gross margin. So as those businesses grow revenue, GM automatically goes up as well. In reality, of course these businesses are not 100% GM. So GM is not a good indicator of profitability potential for Amazon.
    Sep 3, 2015. 04:03 PM | 6 Likes Like |Link to Comment
  • Amazon: Has The New York Times Correctly Rung The Proverbial Bell At The Top? [View article]
    "That said, and to Amazon's credit, outwardly, they have been firing on all financial cylinders as revenue growth, cash flow from operations, and free cash flow have surpassed Wall Street's consensus expectations."

    Amazon's free cash flow is negative more than $1 billion a year when you factor in lease payments.
    Aug 17, 2015. 10:50 AM | 8 Likes Like |Link to Comment
  • Investors Should Not Be Deterred By Amazon's High Earnings Multiples [View article]
    So Amazon is a value stock. I guess it's also a dividend play then :)
    Aug 6, 2015. 05:53 PM | 8 Likes Like |Link to Comment
  • Apple: The Market's False Correction [View article]
    "Apple's doing well with their loyal consumers but smart phones have become commodities like PC's and that's going to impact everyone."

    techy46, what you should have said is "Android smart phones have become commodities like Windows PCs that's going to impact everyone producing or buying those products."

    Mac computers are gaining sales and market share and selling at higher prices while Windows PCs are showing declining sales and margins. The iPhone is showing higher ASPs which means it is not being harmed by the commodity issue, at the same time Samsung and other Android vendors are dropping prices and seeing much lower ASPs.
    Aug 5, 2015. 10:55 AM | 18 Likes Like |Link to Comment