As a frequent short of AMZN, I must say I have a great deal of respect for Bezos and managment at Amazon. They have grown a great business and, while keeping focus, are slowly and deliberately growing their marketplace by expanding into music and later videos. Bezos et al. are also very very good at the stock market game. They timed the opening of the music store to perfection ... really well done, just when the short squeeze might be fading, then bam!
I disagree with some of the shorts thinking that Amazon, as a company, will implode. I do think the stock price is pretty absurd at this point, having built in many great things already. But I can also see the long argument that this is the new Walmart on the web. I made a deal with a friend of mine that he could not buy any more things from Amazon if I did him a certain favor. Within 2 months he broke the deal because he said barnesandnoble.com "sucks".
At this point, I'm just confused. I think my best bet, at this point, is to reflect on my stock losses and gains, reduce the total amount I have in this market, pay off all my debts, and hold mostly cash until I see some really really ironclad air-tight smokingly obvious deal [maybe during a major crash day]. The only thing I can think after the last two weeks is maybe I'm better off leaving stock investing to the pros and just concentrate on long-term speculative plays with a small % of my disposable income.
-Bill |
