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turdburglar (42.04)

What does an iPad do that an Amazon tablet doesn't?

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September 28, 2011 – Comments (3) | RELATED TICKERS: AMZN

Make profits.

There was the iPod.  It made profits.  There were a bunch of cheap, crummy little MP3 players.  They didn't make profits, or at least not anything worth mentioning.  There were some notable failures like Zune, but the iPod is still making money.  The Amazon tablet is just another sorry attempt to imitate the iPad.  If you want to pay 100x earnings for the company, you can invest in it.

But I guess this post is pretty much of a waste of time because it doesn't seem that Amazon investors care much for profits anyway.  They seem to prefer hype.  And when it comes to hype, the Amazon tablet delivers.

100x earnings is just way too cheap for a company with this much hype.  It's a steal.  The PE should be more like 500 maybe, but only after they come out with a solar-powered cloud tablet for the China market.  That would generate some major hype.

 

 

3 Comments – Post Your Own

#1) On September 28, 2011 at 1:14 PM, SkinneeJ (26.38) wrote:

I'll tell you what iPad does that book readers don't do...  And that is to charge you $600 each...

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#2) On September 28, 2011 at 1:39 PM, turdburglar (42.04) wrote:

SkinneeJ - yeah, and people buy it.  and Apple makes profits.  the downside of that of course is that .com people don't like profits so much, so the stock only trades for about 10x next year's earnings.  Oh well, if Amazon decided to trade for 10x next year's earnings, the stock would still be worth $34 or so.  I might even rate it a "buy" then.

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#3) On September 29, 2011 at 1:43 AM, ajm101 (33.72) wrote:

What does it matter if someone would rather buy a Kindle Fire or an iPad when you ask whether AMZN or AAPL is a better investment?

And the iPad does tons that the Kindle Fire doesn't; the problem is that most iPad owners don't use those.  Apple will still be fine.

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