What's going on with Amazon?

Slow02GT said: "As of 9/12/07: I've been holding Amazon for 30 days now and it's risen over 16%. I haven't caught any major news stories other than the thing about NBC picking them over apple to sell downloads of their shows. That was only a few days ago and it was up before then like 9 or 10 percent. Did I miss something?"

Rbreb13 said: "I don't think you missed anything. Just a good stock in a good sector. Holiday buying coming up soon. The fact that its up on a slow and steady pace is a good sign of strength."

Fluidollar said: "[QUOTE=Rbreb13]I don't think you missed anything. Just a good stock in a good sector. Holiday buying coming up soon. The fact that its up on a slow and steady pace is a good sign of strength.[/QUOTE] Are you serious lol? Amazon's PE is 120. Compare amazon with that of other companies that have grown at a similar rate and are expected to do so in the future, and its PE is at least double those other companies. Turn the PE around, and you're saying that Amazon's growth prospects can justify paying $120 for every dollar of earnings. It may be a momentum stock, but there is no way you can possibly justify it as a "good stock". Take a look at other companies that have had PE's above 100, they always come crashing down no matter their growth prospects. Amazon's future growth would have to be stratospheric to justify its price, and there are many other stocks out there more cheaply priced that have better growth prospects."

newinvestor123 said: "I can't believe the damn thing's still rising. I tried to short it a few times at around $60, and dumped at a small loss before it jumped above $70. Then I tried to short it again at $70, with the same results, at which point I forgot about it... AMZN just has some kind of crazy irrational momentum going on for it, along with AAPL and RIMM - I suspect because Cramer pumped them up as the Four Horsemen of Tech (I forgot what the other one was) a few months ago. Personally, I wouldn't touch any of them (except maybe AAPL) - But I'm glad it's working out well for you..."

LongArm said: "[QUOTE=Fluidollar]Are you serious lol? Amazon's PE is 120. Compare amazon with that of other companies that have grown at a similar rate and are expected to do so in the future, and its PE is at least double those other companies. Turn the PE around, and you're saying that Amazon's growth prospects can justify paying $120 for every dollar of earnings. It may be a momentum stock, but there is no way you can possibly justify it as a "good stock". Take a look at other companies that have had PE's above 100, they always come crashing down no matter their growth prospects. Amazon's future growth would have to be stratospheric to justify its price, and there are many other stocks out there more cheaply priced that have better growth prospects.[/QUOTE] Not to speak for Rb, but he said it was a good STOCK, not a good VALUE. To me, a good stock is one that performs well. Stocks can be overpriced and perform well for a long time before the reality of fundamentals sets in."

Fluidollar said: "[QUOTE=newinvestor123]I can't believe the damn thing's still rising. I tried to short it a few times at around $60, and dumped at a small loss before it jumped above $70. Then I tried to short it again at $70, with the same results, at which point I forgot about it... AMZN just has some kind of crazy irrational momentum going on for it, along with AAPL and RIMM - I suspect because Cramer pumped them up as the Four Horsemen of Tech (I forgot what the other one was) a few months ago. Personally, I wouldn't touch any of them (except maybe AAPL) - But I'm glad it's working out well for you...[/QUOTE] Just wait till the charts turning around...then short it like mad. Meanwhile, the other people can hang onto the good stock with a PE of 120 all the way down till it's earnings are priced a little more reasonably."

Fluidollar said: "[QUOTE=LongArm]Not to speak for Rb, but he said it was a good STOCK, not a good VALUE. To me, a good stock is one that performs well. Stocks can be overpriced and perform well for a long time before the reality of fundamentals sets in.[/QUOTE] Well, he used its short term earnings prospects ( the holidays) as a reason to buy it and called it a "good stock in a good industry", which I think implies that its fundamental aspects are at least okay. Far from it...noone can justify paying 120 dollars for a dollars earnings, even with above average growth prospects."

Rbreb13 said: "[QUOTE=Fluidollar]Are you serious lol? Amazon's PE is 120. Compare amazon with that of other companies that have grown at a similar rate and are expected to do so in the future, and its PE is at least double those other companies. Turn the PE around, and you're saying that Amazon's growth prospects can justify paying $120 for every dollar of earnings. It may be a momentum stock, but there is no way you can possibly justify it as a "good stock". Take a look at other companies that have had PE's above 100, they always come crashing down no matter their growth prospects. Amazon's future growth would have to be stratospheric to justify its price, and there are many other stocks out there more cheaply priced that have better growth prospects.[/QUOTE]I stand corrected. I don't look at fundies to often, just charts. The chart shows some more room. LA said it best! :th_dblthumb2:"

lil dickie said: "People are planning on a big Christmas season."

Slow02GT said: "This is all great info guys! looks like I bought it at the right time though. Now I can let it grow for another couple months, then sell as it peaks, and short the hell out of it as it tumbles back down to $20 a share...lol SWEET"