7 ms·

It will be interesting to see if this is the inflection point where Amazon is held to the same standard as other companies (finally).

wdewind 12y ago
This is probably the 10th time this has happened in Amazon's history. I am invested and not worried at all, FWIW.
- OrwellianChild 12y ago
  Can I ask what you expect to occur that will produce the upside or dividend on your investment and what kind of time frame you're operating on?
  - wdewind 12y ago
    Sure I think that's a reasonable question. On a basic level I expect that Amazon will continue to grow, and that in the future the value of the stock will be increased and that I'll be able to sell it. I think an Amazon that was paying dividends could be great, or not, but it doesn't sound like a business that I understand so I wouldn't invest in that because I don't think I could evaluate it. I'm investing in Amazon because I believe in Jeff Bezo's thesis and like what he's doing. It's also a significant but not life changing amount of money invested, so I'm comfortable having my own investment ideas here instead of playing safe with mutual funds, which is what I usually do. But more importantly: why do I expect Amazon will continue to grow? Because they have an extremely large e-commerce business that is providing a base for them to expand into other markets, and because they have demonstrated ability to do so. AWS, Fire, Prime, content etc., are all built on an extremely solid e-commerce foundation. AWS is huge, and is expected to be more and more of Amazon's total business (7% in 2015), and I am betting that they will continue to make new business lines like AWS. My time frame is very long, I'm young and don't need the money anytime soon.
smackfu 12y ago
Same thing happened last earnings. AMZN Jan 30, 2014: $403 high. AMZN Jan 30, 2014: Q2 2014 earnings. AMZN Feb 5, 2014: $337 low.
hyperbovine 12y ago
They'll be held to the same standard as average companies when they get an average CEO. As long as they have a far-seeing genius at the helm I suspect the market will continue to cut them slack.
freyr 12y ago
Exactly, it should be held to the same standard as all the other companies that rapidly transformed from an online bookstore to the leading online retailer. The same standard as all the other online retailers that helped create and then dominate a new electronics product category. And the same standard as all the other companies with the foresight to harness excess computing capacity and become the leading cloud services provider. It's true that Amazon is, at the end of the day, just another company and we owe it to ourselves to judge it objectively. But in any other sense, it's not a standard company.
- outside1234 12y ago
  I'm not saying Amazon is not innovative, but why are their investors not holding them to the same standard as Apple and Google (also innovative). Apple has a P/E of 16, Google has a P/E of 30, Amazon has a P/E of 502. Who is the fool here? Apple and Google for under recognizing their potential as innovators or Amazon investors for over estimating?
  - freyr 12y ago
    Who is the fool here? It's tough to say, as it all remains speculation. But Google has only proven very innovative in terms of introducing products that do not generate revenue. It's success in search and e-mail have subsidized its many flops. And while it has ventured into some interesting long-term innovation (e.g., driverless cars), which is laudable, this is not the kind of innovation that investors seem to appreciate. Apple continues to churn out great devices, and I'm an ardent fan, but the bloom is off the rose regarding the success of the iPhone/iPad. Android phones continue to chip away at its market share, while iTunes is being chipped away at by Spotify/Pandora/Netflix/etc. I don't see a compelling reason to believe they can repeat the success that was the iPhone. If the rumor mill is to be believed, their greatest hope apparently lies in a watch -- and that makes me very queasy as a potential investor.

wdewind 12y ago

This is probably the 10th time this has happened in Amazon's history. I am invested and not worried at all, FWIW.

OrwellianChild 12y ago
Can I ask what you expect to occur that will produce the upside or dividend on your investment and what kind of time frame you're operating on?
- wdewind 12y ago
  Sure I think that's a reasonable question. On a basic level I expect that Amazon will continue to grow, and that in the future the value of the stock will be increased and that I'll be able to sell it. I think an Amazon that was paying dividends could be great, or not, but it doesn't sound like a business that I understand so I wouldn't invest in that because I don't think I could evaluate it. I'm investing in Amazon because I believe in Jeff Bezo's thesis and like what he's doing. It's also a significant but not life changing amount of money invested, so I'm comfortable having my own investment ideas here instead of playing safe with mutual funds, which is what I usually do. But more importantly: why do I expect Amazon will continue to grow? Because they have an extremely large e-commerce business that is providing a base for them to expand into other markets, and because they have demonstrated ability to do so. AWS, Fire, Prime, content etc., are all built on an extremely solid e-commerce foundation. AWS is huge, and is expected to be more and more of Amazon's total business (7% in 2015), and I am betting that they will continue to make new business lines like AWS. My time frame is very long, I'm young and don't need the money anytime soon.

smackfu 12y ago

Same thing happened last earnings. AMZN Jan 30, 2014: $403 high. AMZN Jan 30, 2014: Q2 2014 earnings. AMZN Feb 5, 2014: $337 low.

hyperbovine 12y ago

They'll be held to the same standard as average companies when they get an average CEO. As long as they have a far-seeing genius at the helm I suspect the market will continue to cut them slack.

freyr 12y ago

Exactly, it should be held to the same standard as all the other companies that rapidly transformed from an online bookstore to the leading online retailer. The same standard as all the other online retailers that helped create and then dominate a new electronics product category. And the same standard as all the other companies with the foresight to harness excess computing capacity and become the leading cloud services provider. It's true that Amazon is, at the end of the day, just another company and we owe it to ourselves to judge it objectively. But in any other sense, it's not a standard company.

outside1234 12y ago
I'm not saying Amazon is not innovative, but why are their investors not holding them to the same standard as Apple and Google (also innovative). Apple has a P/E of 16, Google has a P/E of 30, Amazon has a P/E of 502. Who is the fool here? Apple and Google for under recognizing their potential as innovators or Amazon investors for over estimating?
- freyr 12y ago
  Who is the fool here? It's tough to say, as it all remains speculation. But Google has only proven very innovative in terms of introducing products that do not generate revenue. It's success in search and e-mail have subsidized its many flops. And while it has ventured into some interesting long-term innovation (e.g., driverless cars), which is laudable, this is not the kind of innovation that investors seem to appreciate. Apple continues to churn out great devices, and I'm an ardent fan, but the bloom is off the rose regarding the success of the iPhone/iPad. Android phones continue to chip away at its market share, while iTunes is being chipped away at by Spotify/Pandora/Netflix/etc. I don't see a compelling reason to believe they can repeat the success that was the iPhone. If the rumor mill is to be believed, their greatest hope apparently lies in a watch -- and that makes me very queasy as a potential investor.