Kindling Finally Micturated On - Amazon Grace Expires As Stock Plummets

Tyler Durden's picture

It appears the Derek Zoolander Center For Children Who Can't Read Kindle Good And Want To Learn To Go Long AMZN Stock good too (and must be at least this big), is just not gonna get built after all. And so America's brief infatuation with yet another fad draws to a close. All AAPL fans: keep an eye on this one. Don't worry though, both Amazon and Apple will pass the ECB's stress test with flying colors.

Here is some perspective on Amazon from Jim Cramer circa April 26, (courtesy of Benzinga):

Jim Cramer said on CNBC's Stop Trading, Listen to Cramer that (NASDAQ: AMZN) will go to $150.

He thinks that we had a little bit of shake up in this stock because people thought that Amazon (AMZN) did not give a good level of guidance.

Cramer added that Amazon (AMZN) is a prime online retailer and AMZN has perhaps been sandbagging investors with the guidance. He believes that Amazon (AMZN) is ready to go up now, and its story is not even similar to Google (NASDAQ: GOOG) which lost China.

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NOTW777's picture

derek zoolander has a cough

10044's picture

shorters are awarded big time

firstdivision's picture

The day APPL misses estimates, there will be blood in the streets.  APPL's P/E couldn't take such a thing.

Scarecrow's picture

AAPL has a 15x forward P/E. The historical average forward P/E is 14.7x. 

AMZN forward P/E is 31x. I don't see your logic here. 

homersimpson's picture

PE numbers aside (and one can argue PE is basically a worthless number nowadays), I think he's referring to the fact that AAPL is an HFT darling and if AAPL goes south, SKYNET will take down everyone else as well.

Scarecrow's picture

Ok, well then I can understand that, but comparing AMZN (low margin 51x ttm P/E retailer) to AAPL (high margin 22x ttm P/E tech company) is a bit of a stretch. The numbers aren't there. I've hated AMZN for a long time and hope this stock finally dies. I just don't see why anyone would pay 51x ttm EPS or 31x ftm EPS for a Wal-Mart/eBay hybrid. 

Fred Hayek's picture

So . . the economy is completely reliant on idiots like this:


BobPaulson's picture

Good link. I laughed until it hurt.

firstdivision's picture

You are correct and I was incorrect.  I haven't looked at APPL P/E for awhile now.  The comparison is nothing to do with fundamentals.  Granted now that APPL has fabs, they have more value than AMZN by far. More of "just say'n".

ZakuKommander's picture

True, but frankly it's not as if anyone should be surprised that Amazon's halo is fading.  When you're a typical American gadgeteer who must choose between the Kindle and the iPad, the latter captures the imagination, while the former is merely competent.  

firstdivision's picture

That is apples vs oranges (like my comparison earlier).  A Kindle does what it is supposed to very well.  An iPad is a netbookwithout a keyboard, always has been targeted at netbooks.  I do not know when the iPad got converted to an eReader competitor.  If people are only using their iPad as an eReader, then they blew their money into the wind.  Kindles were created for e(books, magazines, and newspapers), not surfing the net and playing games. 

HarryWanger's picture

Apple's time will come as well. iPad is definitely in the fad category and major competition has emerged for iphone. Margins will be impacted on costs and competition. Once that happens, expect a chart similar to this one.

ZakuKommander's picture

Thought so once, but not now.  I'm watching it catch on with friends who are non-techy, never cared much for computers, but carry it around religiously now.  And older people are finally finding something that computer-like but relatively transparent.  

Indeed, Apple's success is due in large part because its products are transparent, almost as easy to use as a garage door opener.   

And as to iPhone competition:


Let them all fail's picture

well if they could only run a stress test on Amazon then everything would be OK!!

Aductor's picture

Obviously this is the new business plan for Moodys et al - providing 'stress tests'. Same, same but different.

NOTW777's picture

maria will now interrupt AMZN coverage to pitch the plunge in gold

NOTW777's picture

hilarious.  nasdaq drops from 5000 to 2000 but maria is worried about loss of momentum in gold.

Cognitive Dissonance's picture

"Derek Zoolander Center For Children Who Can't Read Kindle Good And Want To Learn To Go Long AMZN Stock"

I just placed this in my Office Word dictionary so I don't need to remember how to spell it as I steal it from Tyler. BTW, that chart's showing one hell of a drop. Ouch, that's gonna leave a mark.

NOTW777's picture

a tyler classic - cant stop laughing

FEDbuster's picture

Waiting for the "Blue Steel" Kindle to take them to the next level.

RobD's picture

So I take it Amazon didn't do the revised eps shuffle like some of the others?

Cognitive Dissonance's picture

They didn't do it quickly enough......obviously.

The Alarmist's picture

Gee, I was only a year ahead of things when I shorted it at 112.

Ragnarok's picture

There was a moment last night, when she was sandwiched between the two Finnish dwarves and the Maori tribesmen, where I thought, "Wow, I could really spend the rest of my life with this woman".

Steaming_Wookie_Doo's picture

I just laughed milk out my nose (and I hadn't even had any milk)

almost_have_a_name's picture

This is what the public will see:

Amazon 2Q Profit Jumps 45 Percent: ABC News 


PC Load Letter's picture

Classic TD, thanks for the laugh


traderjoe's picture

Wow - what a drop. Perhaps now a slow burn until the stock becomes a busted growth stock/value play. 

Cramer liked Netflix too. Ouch. 

plocequ1's picture

Can someone see what's going on with Microsoft? Theres quite a party going on.

Jason T's picture

Been short since Feb at 118 .. rode this pig to 151 for goodness sake.

Markets are dreadfully inefficient. Not covering yet..waiting for the real bloodbath in valuaitions to come.

Leo Kolivakis's picture


The Rock's picture


Why would I short AMZN when the economy is recovering Leo?  ;-)

economicmorphine's picture

Uhhh, I think the chart was what some folks refer to as "supporting documentation."  Sure looks like a short on the chart, anyway.

The Rock's picture

Yes, but I thought shorting AMZN would be heresy to Leo.

Leo Kolivakis's picture

In the stock market, there are always winners and losers. This pig has to come down to earth.

Internet Tough Guy's picture

Harmless gasoline fight gone wrong?

Misean's picture

I fell asleep in my chair reading the Stressless Test II:European Boogie Nights review...Wha Happ'n!?!?

Pamela Anderson's picture

Is it just me or Cramer ads. began showing left and right at ZH with the legends: "Profit with Cramer!" and "Follow the expert"?

The Rock's picture

It's not just you.  But you do know that ZH has nothing to do with the ads that are being placed by google right?

Btw, Cramer is the biggest POS DOUCHEBAG clown this world has ever seen.

economicmorphine's picture

That's not true.  You can specify which ads you don't want to run with Adwords.  It's easy.  That's how you keep your competition's ads off your site.

The Rock's picture

I just meant that ZH does not place the ads themselves.  Yes, you are correct that they can block it, but why would they even bother in this case?

spyware-free's picture

Welcome to the wonderful world of ad bots. Brought to you by

It's amazing where your browser goes without most people knowing it.

New_Meat's picture

Pam--when the ZH part of your avatar is in ascendence, then on one side, when the beard, the other side.

But don't worry "there is no correlation".

- Ned

"when the moon is in the seventh house, and Jupiter aligns with Mars"  neh

Waterfallsparkles's picture

Amzn is a Widows and Orphans Stock.  That means that anyone that Trades that stock ends up making their Wife an Children Widows an Orphans.


Mercury's picture

This chart just reminded me of the chef on (old school) Sesame Street who, right after the just-perfect presentation of his baked goodies, would wipe out down the stairs:


stoverny's picture

Don't own a Kindle (and have never seen a real life person reading one), but I still think AMZN is a great company.  I buy a ton of stuff from them simply because their price, selection, convenience, and service are almost always better than B&M stores.

ejmoosa's picture

I've been using the pc version on the laptop, and enjoy more than I expected.


What is more impressive is that there is no shipping expense on any ebooks, and they are sellong more ebooks than real books.  That has to be a big positive on the bottom line.

economicmorphine's picture

What's even better is Project Gutenberg .  Thousands of ebooks, all free.