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This is true. Unfortunately markets have limited supply of fools with money. When the supply runs out, there is a correction. Figuring out when the correction
by Nokinside 9y ago
This is true.
Unfortunately markets have limited supply of fools with money. When the supply runs out, there is a correction.
Figuring out when the correction happens is hard. It can take several years before the AMZN value is corrected. I would say that it happens within three years, but I could be wrong.
- pmoriarty 9y agoPeople were constantly predicting Amazon's fall (and that of a ton of other skyrocketing stocks) throughout the whole of the first internet bubble. They were all wrong, until they were right.
- Nokinside 9y agoThere is difference between company failing and company price collapsing. Amazon may do fine, it's just that Amazon's price will be radically adjusted. When Internet bubble busted in last time. The Four Horseman of Tech (Microsoft, Dell, Cisco and Intel) lost 75% of their market value. Intel was valued $73.94 in 2000, now it's 36.3. The value of the stock never recovered even if the company is still going strong. Microsoft's value has been below it's bubble valuation 16 years and it broke it's previous record last year. It took Amazon stock price 10 years to recover from 2000 bubble.