AMZN has market cap of $34b. My rhetorical question: Could you not put together an equally good website with good software and then inundate the web with advertisements to let people all know you are there for less than $2b? I think so. Means AMZN is overvalued by roughly $32b.
If you think about the internet, it will bypass a lot of the cost of "the middleman." It will add value to those who add value in some unique, hard to duplicate way. When you get past the blur of this internut craze, you will see that AMZN is just a middleman. Sooner or later it will fall in price, though it might take awhile to do so, and get even more ridiculously priced before then. Border's is somewhat of a middleman too, but they provide a nice selling experience, and other than underwear and rice, most shopping has a heavy psychological/spiritual (lol) overlay. Those who have the motto: "When the going gets tough, the tough go shopping" are not talking about cyberspace stores.
Now Yahoo is not a middleman. It can become the monster search engine, and its databases would be hard to duplicate. It is definitely a growth stock, but probably still overvalued.
Just my idle thoughts on this subject.
Geoff Wren |
