AMZN - no margins, but ramping upward

Amazon (AMZN) closed strongly higher for the first time in almost a month, +4% @ $269. The recent high of $284 is very much within range..and then its open air into the 300s. Today's action is all the more remarkable considering AMZN is a loss making company.


AMZN, daily

Summary

I do like to focus on price/earnings, but now that AMZN doesn't make ANY money, it no longer even has a P/E.

Is that some sort of ultra-buy signal? In this market, it seems that so long as you are 'big', it really doesn't matter whether you make money or not.

see key stats @ yahoo! finance

Forward PE is in the 70s, but hey, that's based on the notion that AMZN will start making money this year, and that is something I find somewhat suspect.

The underlying economy is still lousy, and AMZN management are showing virtually no attempt to improve margins. Ohh, the AMZN leadership are showing massive attempts to increase volume/sales, but...not the margins!

Until I see this company with stable 'minimum' margins of 5-7%, I can't take it seriously as a company.

Incredible times....and incredible valuations.