AMZN, daily
AMZN, weekly
Summary
Is there anyone in the developed nations that didn't order at least one item from Amazon this Christmas holiday season?
Yet, despite the HUGE customer base, a highly respected brand/service, AMZN is failing. It is simply unable to hold a decent profit margin.
see key stats @ yahoo! finance
With a trailing PE of 3195, something is seriously wrong here.
Indeed, unless AMZN can become even more efficient, it is in real danger of posting some very significant losses in the coming few years.
Fair value?
On any outlook, AMZN should be no higher than $100, and that's assuming stable moderate economic growth, with no 'ticking econ-time bombs'.
Today's upgrade of AMZN by Morgan Stanley is indeed bizarre, but then that is the modern financial services industry for you.
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Lets be clear, AMZN is not going anywhere, it could easily sustain massive losses, but for now..despite the latest rally of hysteria, the stock is grossly over-valued.
Eventually...things like price/earnings ratios do matter. Today's trailing PE of 3195..is simply insane. Eventually...normalcy will return, just as it did for NFLX, GMCR, CMG...and so many other 'hysteria driven' stocks.
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AMZN Q4 earnings are due, at the close of Thursday Jan'31st. It will be fascinating to see how they did this Christmas.
