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I didn't know AMAZON's numbers were this dismal

by writeaway
12 replies
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Amazon, the stock, not the affiliate program looks very scary... if you care about fundamentals like PE, book value, etc.

Based on a recent analysis, Amazon's looking shaky.

But at its current price of $427 (and trailing earnings of minus 88 cents per share), AMZN has an analysts' combined forward "estimated" PE of 97, zero dividend, a price/book value ratio of 18:1, an equity/asset ratio of 0.22, net margins of -0.4%, and an ROE of -3.84%. If ever there was a company priced for perfection, this is it.
Are we on the CUSP of another DOT COM meltdown?
  • Profile picture of the author butters
    Originally Posted by writeaway View Post



    Are we on the CUSP of another DOT COM meltdown?
    No... (Needs to be a 10 character reply)...
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    • Profile picture of the author PBNDeveloper
      Originally Posted by butters View Post

      No... (Needs to be a 10 character reply)...
      If it makes you feel any better I got it
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  • Profile picture of the author yukon
    Banned
    Originally Posted by writeaway View Post

    Amazon, the stock, not the affiliate program looks very scary... if you care about fundamentals like PE, book value, etc.

    Based on a recent analysis, Amazon's looking shaky.



    Are we on the CUSP of another DOT COM meltdown?



    You're reading link bait.

    Amazon is up +16.27% over the last quarter.





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    • Profile picture of the author Kay King
      The brilliant concept of that article seems to be "But it is not a model that withstands competition forever".

      Nothing lasts forever but Amazon is consistently improving service and ship times....their customer service is the best I've seen anyone online or offline. Competition will have to work hard and spend a lot to catch up. Amazon won't be going down anytime soon though stock may fluctuate along the way. At some point growth will slow - but that may be years into the future. I'm not a stock market person but seems to me some are judging Amazon by .com standards and Amazon has grown past that level.

      Last Thursday morning I ordered a pair of TEVA sandals on Amazon - they were delivered to the house Friday morning....24 hrs later. Free shipping.
      I was shocked - but apparently there's a fulfillment warehouse about 2 hrs away.
      Signature
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      • Profile picture of the author seasoned
        Originally Posted by Kay King View Post

        apparently there's a fulfillment warehouse about 2 hrs away.
        YEP, THAT is his goal! It is GREAT for customers, but *****EXPENSIVE*****! If real estate prices climb, in REAL terms, and the economy REALLY improves, it could pay off, if the population somehow increases. But the real estate isn't going like that, the economy isn't, and without that, the population that COUNTS won't increase.

        ANOTHER thing! The zero cost cost of his B&M used to be *****ZERO***** So if it cost him nothing, it cost nothing, and was a 100% BENEFIT, because customers were ELATED! NOW, if it costs him nothing, it could cost him an average of about 9% JUST THROUGH SALES TAX! It could probably cost another 3%+ through lost business, and maybe dozens of percent due to various fees! And CUSTOMERS? Well, THEIR costs go up, so they won't be so happy!

        Steve
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    • Profile picture of the author seasoned
      Originally Posted by yukon View Post

      You're reading link bait.

      Amazon is up +16.27% over the last quarter.
      OK, WHY are you showing that graph and implying that amazon is worth TRILLIONS of dollars? The graphis OBVIOUSLY stock, the "16.27% over the last quarter is MEANINGLESS", and it doesn't say the OP is wrong.

      Yeah, I don't know how long it will go on, etc... But jeff Bezos went crazy and wants to make the realistic virtual historic megalith of book sellers in to a pipe dream kind of unrealistic B&M historic megalith of EVERYTHING. If not for side businesses(Like alexa), the surprisingly profitable virtual computing servers(like AWS), suing some competitors into submission(like barnes and noble), and selling the platform usage(Like toys R us, kindle authors, etc...), along with the great timing of some content platforms(kindle, fire), I'm sure they would have gone bankrupt LONG ago! IRONICALLY *****NONE***** of that would have been possible without bluffing and the IPO! But the idea of the B&M COULD kill it ALL!!!!

      Steve
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      • Profile picture of the author yukon
        Banned
        Originally Posted by seasoned View Post

        OK, WHY are you showing that graph and implying that amazon is worth TRILLIONS of dollars? The graphis OBVIOUSLY stock, the "16.27% over the last quarter is MEANINGLESS", and it doesn't say the OP is wrong.
        Lmao, the OP link IS pointing to a stock market site.

        Yes, it says he's wrong because historical prices trump tin foil hat theories.
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        • Profile picture of the author seasoned
          Originally Posted by yukon View Post

          Lmao, the OP link IS pointing to a stock market site.

          Yes, it says he's wrong because historical prices trump tin foil hat theories.
          It is a tinfoil hat theory when so many companies HAVE gone bankrupt by spending more than they take in? LOTS f stock prices go UP on worthless companies, and even DOWN on valuable ones. So yep, the stock market doesn't mean that much. AND, after the IPO, MOST of the increase in share price often goes to people OUTSIDE of the company.

          Steve
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          • Profile picture of the author yukon
            Banned
            Originally Posted by seasoned View Post

            It is a tinfoil hat theory when so many companies HAVE gone bankrupt by spending more than they take in? LOTS f stock prices go UP on worthless companies, and even DOWN on valuable ones. So yep, the stock market doesn't mean that much. AND, after the IPO, MOST of the increase in share price often goes to people OUTSIDE of the company.

            Steve
            You're speculating, that's what speculators do.

            Where have you been? The Amazon IPO happened in 1997. Business as usual...
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            • Profile picture of the author seasoned
              Originally Posted by yukon View Post

              You're speculating, that's what speculators do.

              Where have you been? The Amazon IPO happened in 1997. Business as usual...
              Do you realize that amazon lost over 400million in the past year? In three of the last quarters, they lost a LOT of money! It would have been REALLY dismal if not for the fact that in the last quarter of 2014, they MADE some money!

              So WHERE did I get that info? From AMAZON! HEY, LOOK IT UP! It is a REQUIRED PUBLIC RECORD!

              As for my speculating on the future? YEP! HEY, I changed my opinion of Apple when I found out that, after Wozniak's injury, Jobs threw out all the talent, etc... and started changing things. Was I right? YEP! Costs went up, sales went down, jobs was ousted. I didn't think about him later coming back and lucking out with a few "ME TOO" "IDEAS".

              And then there was something I always said, and I FINALLY found out what a company SUPPOSEDLY did! At the same time, I found out they did ANYTHING BUT! I said they should go bankrupt, along the lines of how I said things should go. DID THEY? Well, two years later that media darling was touted as the biggest bankruptcy in history! HEY, read a little about it! THEY were big ALSO! And THEY were "making money"!

              ENRON'S COLLAPSE - THE OVERVIEW - ENRON COLLAPSES AS SUITOR CANCELS PLANS FOR MERGER - NYTimes.com

              So YEAH, things could change. Maybe bezos will change, or get ousted. Amazon has a lot that can EASILY make profit with practically no effort. There are some things you JUST CAN'T DO!

              Steve
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      • Profile picture of the author HeySal
        Originally Posted by seasoned View Post

        OK, WHY are you showing that graph and implying that amazon is worth TRILLIONS of dollars? The graphis OBVIOUSLY stock, the "16.27% over the last quarter is MEANINGLESS", and it doesn't say the OP is wrong.

        Yeah, I don't know how long it will go on, etc... But jeff Bezos went crazy and wants to make the realistic virtual historic megalith of book sellers in to a pipe dream kind of unrealistic B&M historic megalith of EVERYTHING. If not for side businesses(Like alexa), the surprisingly profitable virtual computing servers(like AWS), suing some competitors into submission(like barnes and noble), and selling the platform usage(Like toys R us, kindle authors, etc...), along with the great timing of some content platforms(kindle, fire), I'm sure they would have gone bankrupt LONG ago! IRONICALLY *****NONE***** of that would have been possible without bluffing and the IPO! But the idea of the B&M COULD kill it ALL!!!!

        Steve
        We were just talking about this out in Cal the other day. My nephew is an engineer at Intel and is pretty well up on what these companies are doing.

        It seems that on the Amazon end it's not customers - it's vendors that are getting fed up with them. They treat both their vendors and their employees like crap. A lot of their money goes to lawsuits. They were sued in Las Vegas area for cheating employees out of any minute of pay they could. In PA, they were actually killing them. Where I tried them out on Xmas vacation, they had ambulances hired sitting in the parking lots because they knew they were pushing harder than some were going to be able to take.

        As a vendor on kindle, I'm about done with them, too. That company is starting to smell from all directions.
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        Sal
        When the Roads and Paths end, learn to guide yourself through the wilderness
        Beyond the Path

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        • Profile picture of the author seasoned
          Originally Posted by HeySal View Post

          We were just talking about this out in Cal the other day. My nephew is an engineer at Intel and is pretty well up on what these companies are doing.

          It seems that on the Amazon end it's not customers - it's vendors that are getting fed up with them. They treat both their vendors and their employees like crap. A lot of their money goes to lawsuits. They were sued in Las Vegas area for cheating employees out of any minute of pay they could. In PA, they were actually killing them. Where I tried them out on Xmas vacation, they had ambulances hired sitting in the parking lots because they knew they were pushing harder than some were going to be able to take.

          As a vendor on kindle, I'm about done with them, too. That company is starting to smell from all directions.
          HECK, look at amazons HISTORY!!!!!! That tells you a LOT! AND, until to realize that what I said above is true, you have to ask yourself WHY!!!!!!!!! Amazon started when a guy decided to sell books on the internet! Take it from me, he COULD have done that for practically NOTHING! He could have made a BUNDLE. But WHAT was his first step apparently? Borrowing $300,000 from his mother!!!!! He used a sales technique that back then was apparently rather unusual, called Affiliate marketing. He paid EVERYONE a flat 15%! He eventually started advertising on the radio, tv, etc... but they were famous BEFORE that because MOST sites had a page to buy books from AMAZON. They EVEN got many suppliers to give them a 40%+ discount. If you are thinking about trying this, realize that they have now lowered the amount DRAMATICALLY. and increased red tape. AGAIN, WHY? Barnes and noble did the obvious, but Amazon claimed they OWNED rights to it, so they sued barnes and noble, which eventually used amazons back end. AMAZON went into the service business. THAT has grown, etc... HECK, I am at a customer NOW that probably spends a fortune every month for a service, and AMAZON likely gets the bulk of it. When I say fortune, it COULD be 100s of thousands a month.

          But IMAGINE! If people speak of amazon TODAY, are they talking about books? PROBABLY NOT! I estimate that less than 20% of the stuff I get from amazon would EVER be from a bookstore. HECK, about 50% of it isn't even from amazon, but from some place else.

          STILL, if they do what they apparently are planning, which is like how the company started, they may not survive another 10 years.

          Steve
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