OT
From an investment perspective, Amazon is way over rated in my opinion. It will never grow into it's valuation
I'll be generous and give AMZN a trailing P/E of 100, which should price it at about $64. Even with the recent market correction, the price is waaay out of whack! What are people thinking?? That there is no competition to Amazon, or existing competitors will just lie down and die? Amazon is spending capex like crazy -- warehouses, delivery services, gadgets (Kindle, and next, a smart phone), etc. -- not because it wants to, but because it has to, just to remain competitive. Nobody can say when that spending is going to taper off if ever. I doubt even Jeff Bezos knows. To the extent there are retailers starting up and folding every day around the world, it's unknowable, IMHO. And then there are local and national politics -- you can only get so big and take so much business away from someone's constituents before the walls start going up. |
