[Old message deleted]
My followup message places it in context:
Companies are valued because of future activities. It is near impossible to "demonstrate" that any company will be profitable in the future. However, on the balance of probabilities, yes I think it will be profitable. I don't need no ads to go to Barnes and Nobles to buy books. The place is huge, the selection's great. At some point the same will be true with Amazon.com.
Will it ever be worth several billion dollars? I'd say a billion dollars sure, sometime around 2000.
Five billion dollars? Maybe not, and that is why I don't own stock on this company, but I wouldn't short it either since fundamentals are not collapsing (yet).
To this date, I still hold the view that Amazon could have been profitable. Less agressive expansion in distribution centers, less advertising, no $3,000 gas BBQ and garden tools, better management....
In fact, I think Amazon still has a good chance of turning a profit after declaring bankruptcy, which would free them from their leases and debt obligations... |
