AMZN will need to grow earnings 40% per year or better over the next 5 years to justify its current valuation. If GOOG was able to grow earnings 40% per year over the next 5 years, its present stock price would be $1200+, more than double its current $567. Now you tell me, which company would you pick to grow quicker over the next 5 years - AMZN or GOOG ?
An online retailer vs the most dominant force in the internet world ? Seriously folks, either AMZN is massively overvalued or GOOG is massively undervalued. The truth is probably somewhere in between.
Of note, AMZNs largest shareholder at 22% - Legg Mason and its legendary manager Bill Miller is preparing to tone down risk in the portfolio by reducing sizeable positions . Could this mean cutting down the $8.5 billion worth of AMZN stock he currently owns ? Me thinks so. AMZN is Millers largest position. AMZNs second largest holder T. Rowe Price is also cutting back.
Showing posts with label AMZN. Show all posts
Showing posts with label AMZN. Show all posts
Friday, September 28, 2007
Tuesday, June 12, 2007
RECAP
The bulls got beaten up today. Murdered would be a better word. The worst part is that the indices recovered from big losses and went green at 2pm ET with the Dow erasing a 100 point loss and going up 25. Than part II of the massacre took place with a more than 150 point Dow loss in the final two hours of trading. Dow down 129, Nasdaq 22 and the S&P 16. The S&P in particular is facing heavy resistance at the 1515 level. Transports, utilities , housing and oil were beaten up today. The Qs and tech in general were better relative performers.
Netflix shares took a drubbing as Blockbuster introduces lower priced subscription to its online rental service. Was it not too long ago when NFLX was rumored to be an AMZN buyout target ? Hmmm how things changes in a short span of time.
Blackstones bottom line financial hocus pocus ? Like anyone cares. They will all buy the IPO and race to the exists. When money is cheap and plentiful, you do not ask questions.
Surging bond yields are being blamed for the market drop. As the cost to borrow becomes more expensive there will be a drop off in buyouts. I would not be surprised to see a few current deals get quashed as financing issues arise.
Mortgage defaults surged 90% last month according to RealtyTrac. Where are all those clowns that were on the financial networks proclaiming an end to housing and subprime woes ? They should all be brought on national television and flogged. Good thing they do not live under a totalitarian regime or else they would be executed for their bullshit ANALysis.
Congress is being urged to double tax rates on hedge fund managers and private equity managers. If this bill passes I would buy up a lot of luxury real estate in tax free havens like the Caymans. Hedge funders and Private equity will be migrating in hordes.
Well after today crazy market action lets see what the next 24 hours brings.
Netflix shares took a drubbing as Blockbuster introduces lower priced subscription to its online rental service. Was it not too long ago when NFLX was rumored to be an AMZN buyout target ? Hmmm how things changes in a short span of time.
Blackstones bottom line financial hocus pocus ? Like anyone cares. They will all buy the IPO and race to the exists. When money is cheap and plentiful, you do not ask questions.
Surging bond yields are being blamed for the market drop. As the cost to borrow becomes more expensive there will be a drop off in buyouts. I would not be surprised to see a few current deals get quashed as financing issues arise.
Mortgage defaults surged 90% last month according to RealtyTrac. Where are all those clowns that were on the financial networks proclaiming an end to housing and subprime woes ? They should all be brought on national television and flogged. Good thing they do not live under a totalitarian regime or else they would be executed for their bullshit ANALysis.
Congress is being urged to double tax rates on hedge fund managers and private equity managers. If this bill passes I would buy up a lot of luxury real estate in tax free havens like the Caymans. Hedge funders and Private equity will be migrating in hordes.
Well after today crazy market action lets see what the next 24 hours brings.
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