SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 226.19-1.8%Dec 12 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Rob S. who wrote (19438)10/1/1998 1:54:00 PM
From: Sam Citron  Read Replies (3) of 164684
 
CBTSY and CIEN used to have a PSR of 16 also. Both had been regarded as the "stars" in their industries before they were crushed by their inevitable failure to meet exalted expectations. The young analysts who cover AMZN have no historical experience or insight with which to fairly value such tulip bulbs in a normal market and do not dare cry "The emperor has no clothes" although they know it in their hearts. They share a common error of projecting early astronomical sales growth trends into infinity and letting disappointed stockholders pay for their education.

As you rightfully note, q-q sales growth has markedly slowed and it will be next to impossible for AMZN to maintain market share. Online competition in bookselling is even more severe than in the stores because transaction costs and switching costs for customers are much less, due to the greater ease of comparison shopping. Nor is the online bookselling industry immune to the same economic forces that are causing other retailers these days to get crushed. Momentum drives on momentum alone, as the lack of even a pretense of fundamental analysis on this thread shows. But in the long run, fundamentals will determine the stock price rather than dreams.

Sam Citron
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News