October 24, 2013
– Comments (3) |
RELATED TICKERS: AAPL
$AAPL profit in one year is 22x what $AMZN has made in its entire existence.
I just don't get Amazon and why people buy it.
People buy it because of the big revenue growth. I get it.
What i think a lot of people aren't realizing, is that eventually amazon will raise prices because it is going to need to turn that revenue into profit. When that happens, taxes are going to be increased on it, and other websites will start popping up as competition; websites that right now can't compete because amazon sets the competitive margins so low.
If amazons P/E was even as high as lets say 40, I would still buy it. But at a forward P/E of 126, f outta here
And that is why I don't get it. It loses money. Revenue growth is nice if it turned into profits, but it just doesn't for years now with Amazon. I'll just grow my Apple position, at least they make a profit, is sitting on a ton of cash and gives me a dividend.