For people tempted in shorting AMZN, let's tell things as they are :
- There is collusion between underwriters/analysts and AMZN in the area of news releases (content and timing), setting of revenue objectives and EPS. The goal is to create a constant stream of "positive" news, to support stock price at critical times, and to orchestrate the squeezing of shorts.
- To maintain the illusion of a succesful model, analysts and company management focus exclusively on revenue growth, and justify mounting losses as an "investment in the future", while regularly lowering the bar for the company.
- More and more professional investors, have figured out this perverse game, and are buying internet stocks without any consideration for fundamentals. (Also, more and more internet companies are being launched following the same pattern of collusion between underwriters/analysts and management.)
- New shorts are coming in regularly, and are getting squeezed following each announcement of quarterly results, new product announcement, contract, stock splits etc....
-IMO, the game stops with a Nasdaq crash.
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