Eugene-
<< We just disagree on the potential for profits, Victor. >>
Well, I think we also disagree on the value of the future profits, if there are any. If there are any, by then sales growth will have slowed dramatically, so profit growth will have to come from where, um, from cost-cutting maybe? But wasn't the internet already supposed to be 100% efficient- like as in no bricks and mortar, only AMZN has lots of bricks and mortar and inventory, too, as of its latest business plan, anyway.
Secondly, your future profits will be diluted by increases in the public float.
Thirdly, with losses increasing, not decreasing, the prospect for profits within any reasonable period for holding long to the stock is very dim, imo. The opportunity cost of not being able to invest in companies with quality revenues and earnings is dear.
If you are into trading the stock, as many on this thread are, then that is a different story altogether. It seems to be a great stock to trade, for those who are skilled in trading, which I am not.
<<I think that amzn will be one of a very few companies that creates a successful virtual retail empire. Maybe the only one. >>
That's like saying only Kmart can be successful, and no other big discount department stores.
i don't think many folks really think the co is worth $8 billion, never mind the $18 billion it actually sells for. What they do believe in is trying to make a buck off the stock, or in the case of the underwriters who keep giving it their votes of approval, they believe in making underwriting fees from it.
But who knows, if reward is proportionate to risk, then maybe the longs will be hugely rewarded, even more so than they have in the past.
Victor |
