How do you know they're wrong?
William- that is the point...No one knows whether AMZN will or won't prosper. All we know is there are people out there telling folks it is OK to "invest" in a company capitalized at $18B whose earnings are a "few years away"....and, "we think that development of brand name and adding features may someday make them a profitable company, but right now....Well, they can still borrow a billion and, though the losses mount, revenue is rising...."
It is sheer speculation whether AMZN or some other as yet unnamed internet company, or WMT etc. etc., will be the ultimate internet retailer of choice. Some will survive...The survivors will not all prosper...How many will ever justify an $18B market cap....with a book value that is mostly good will?
"We don't really know, but buy AMZN because if we are correct and really can see the future, AMZN is there..."
"If we are wrong...well, never mind, we think we're right. Oh, by the way if you buy this stock on margin, we require a little extra capital, you understand!"
Mike |
