Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Philstockworld (Reporter)
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Too Much Tuesday? Amazon Shows the Sky May Actually be the Limit

% of readers think this story is Fact. Add your two cents.


Down 10%?

That’s right, Amazon (AMZN) is down about 10% from that big post-market spike it took to 3,650 on 4/29 on the release of their earnings.  Despite earning $27Bn in the past 12 months (through 3/31) it’s hard to rationally support a market cap of $1.85Tn at 3,600 as that’s 68 times those earnings and those earnings came in a year which was perfecft for Amazon, with everyone staying home (with Government checks) and ordering on-line for an entire year.  In all likelihood, this may simply be as good as it gets for AMZN.

Expectations for 2021 are for another $27Bn to be put in the books at AMZN but I’m betting they miss those targets as people begin going outside again in the second half of the year.  Whatever the case, it’s all about trade-offs and sales at AMZN’s Whole Foods were off 16% last year – despite the fact that people still eat food.   In fact, had not Prime Moved up to a record 200M Members in 2020 – AMZN would not have had an earnings beat at all as Prime Revenues are now $25.2Bn, accounting for almost 100% of the company’s profits (much like Costco).  

Like Tesla (TSLA) trading Bitcoins, it should bother you when the company you invest in doesn’t actually make money doing the thing they’re supposed to be doing – like selling cars or selling merchandise.  Bezos and Musk have the same problem as neither one of their core businesses is inherently profitable that way Microsoft is with software or Google and Facebook are with selling search ads.  Investors tend to treat them all the same and that’s why you have these insane P/E ratios for AMZN (68x) and TSLA (686x) but more normal ones for MSFT (34x), FB (27x) or GOOGL (31x).  Investors are trying to put the square pegs on the round holes…

Part of it is from lazy, poor valuation models that tend to treat all stocks in a sector like they are the same and that’s very much in line with the very poor quality of analysts these days.   Most people get their market analyst for free these days and that advice tends to come from bloggers who have no particular qualifications whatsoever but even the “professional” analysts generally suck – even the…

Provided courtesy of Phil’s Stock World.

To read the rest of this article now, along with Phil’s live intra-day comments, live trading ideas, Phil’s market calls, additional member comments, and other members-only features – Come to the winning side at Phil’s Stock World by clicking here.

To sign-up for a free trial membership, click here.


Source: https://www.philstockworld.com/2021/05/04/too-much-tuesday-amazon-shows-the-sky-may-actually-be-the-limit/?utm_source=beforeitsnews&utm_medium=feed&utm_campaign=psw-feeds&utm_content=article-link


Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover -  Reduces Smart Meter radiation by 96%! (See Video).

Report abuse

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.