Amazon Reports First Quarterly Loss in 4 Years
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Re: Amazon Reports First Quarterly Loss in 4 Years
#2If I had any cash sitting in my brokerage account, I'd probably buy a few more shares of AMZN with it right now.
Re: Amazon Reports First Quarterly Loss in 4 Years
#3Shares already recovering, loss was "better" than expectations, a lot of their spending is on important business stuff (warehouses, kindle, web properties) that will yield returns later.
In other words, revenue is nearly identical and there's no profit, presumably because of these new things.
Amazon is one of the few very large companies that has extremely high potential for growth. I made an OK amount of money buying them after post-earnings panic and selling 1 day to 60 days later this year and last.
If it ever goes back down to 190 I might throw some % of my long term money their way.
(100% of my long term money, which is about $1000 every two weeks, is currently just going to TGT, another long term big company that already has a dividend but still has plenty growth potential)
((90% of my short term money, on the other hand, was buying 10K shares of OCZ at 4.90. Now its at 1.36. Ouch!))
Re: Amazon Reports First Quarterly Loss in 4 Years
#4If I had any cash sitting in my brokerage account, I'd probably buy a few more shares of AMZN with it right now.
I like the company but at 250-300 times earnings it's a darn expensive stock.
Re: Amazon Reports First Quarterly Loss in 4 Years
#5If I had any cash sitting in my brokerage account, I'd probably buy a few more shares of AMZN with it right now.
I like the company but at 250-300 times earnings it's a darn expensive stock.
I'm guessing everyone is waiting until Amazon is the only game in town and can increase margins every product but those that would allow a new competitor to survive to profitability.
Once they are in a position to increase margins without risk of lost market share, the current valuation will be justified.
Re: Amazon Reports First Quarterly Loss in 4 Years
#6Shares already recovering, loss was "better" than expectations, a lot of their spending is on important business stuff (warehouses, kindle, web properties) that will yield returns later. In other words, revenue is nearly identical and there's no profit, presumably because of these new things. Amazon is one of the few very large companies that has extremely high potential for growth. I made an OK amount of money buyin…
Dumb question, as I literally know nothing about stock or savings: isn't it generally a bad idea to put 100% of your long term money in any one place?
Re: Amazon Reports First Quarterly Loss in 4 Years
#7Shares already recovering, loss was "better" than expectations, a lot of their spending is on important business stuff (warehouses, kindle, web properties) that will yield returns later. In other words, revenue is nearly identical and there's no profit, presumably because of these new things. Amazon is one of the few very large companies that has extremely high potential for growth. I made an OK amount of money buyin…
>a lot of their spending is on important business stuff (warehouses, kindle, web properties) that will yield returns later
This has been the Amazon story basically since founding. At some point, a company needs to yield real returns on their investments.
Re: Amazon Reports First Quarterly Loss in 4 Years
#8Earlier quoted context omitted.
I like the company but at 250-300 times earnings it's a darn expensive stock.
I'm guessing everyone is waiting until Amazon is the only game in town and can increase margins every product but those that would allow a new competitor to survive to profitability. Once they are in a position to increase margins without risk of lost market share, the current valuation will be justified.
> Once they are in a position to increase margins without risk of lost market share
That day may never come.
edit: Every quarter with margins in the single digits is additional evidence that it won't.
Re: Amazon Reports First Quarterly Loss in 4 Years
#9Earlier quoted context omitted.
I like the company but at 250-300 times earnings it's a darn expensive stock.
I'm guessing everyone is waiting until Amazon is the only game in town and can increase margins every product but those that would allow a new competitor to survive to profitability. Once they are in a position to increase margins without risk of lost market share, the current valuation will be justified.
Fresh competition is never more than a click away.
I get that Amazon is playing the long game, forgoe profits now to build a dominant company for the future. But how long have they been playing this long game for? How much longer before it pays off? This is a 17 year old company. People younger than Amazon are getting married and having kids.
Re: Amazon Reports First Quarterly Loss in 4 Years
#10Shares already recovering, loss was "better" than expectations, a lot of their spending is on important business stuff (warehouses, kindle, web properties) that will yield returns later. In other words, revenue is nearly identical and there's no profit, presumably because of these new things. Amazon is one of the few very large companies that has extremely high potential for growth. I made an OK amount of money buyin…
Dumb question, as I literally know nothing about stock or savings: isn't it generally a bad idea to put 100% of your long term money in any one place?
Sorry, I'm only referring to new money: every 2 weeks I put $1000 into my brokerage account to buy whatever long term stocks/funds on my watchlist look good that week.
Lately that's been nothing but Target, but it might switch to nothing but Amazon next month, or 50% AMZN 50% something else, and so on. So it's just the new money coming into the account getting divvied up, but doesn't reflect the actual holdings of long term account as a whole (which might only be 20% TGT and 80% other stuff)