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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. Th

by 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.

by freyr 12y ago

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.