Ghost of Igloi wrote:
seattle prattle wrote:
you lost me.
Amazon is a loss leader on everything they sell. Driving other companies out of business by the day. One can assume that this type of business model can continue to drive the stock higher.
There's a difference between undercutting to drive out the competition and reinvesting your earnings to into new opportunities. I don't think many analysts miss that Amazon is aggressively pursuing the latter.
Just this morning a friend who is in the mid to upper levels of a tech company told me how much his company pays each month to Amazon for web services. It is an astounding fee, and that was the point. But he followed it up by saying how much they pay on the debt to a server farm for data storage each month, and with Amazon's AWB they no longer have to use it, and the monthly fee to Amazon is much less.
Point being, you are caught up in the company as a seller of goods, and viewed in that light, they look lackluster. But looking at them in that light is missing the point. You are certainly entitled to your view and your metrics. But at what point do you say you were wrong? Three (3) plus years of one of the strongest bull markets would have been more than enough for me....