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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-Michelle-'s picture

Project Gutenberg is nice, but the top sell for the Kindle (at least for me) is the portability.  There are thousands of free ebooks on Amazon, also.

New_Meat's picture

and Gutenberg, that I love, has files in ascii, who would'a thunk.  But the books are mostly ...gonezo... from the popular consumption.

- Ned

anony's picture

That story about selling more ebooks than realbooks was spun.

The real story is that more ebooks were downloaded than HARDBACK books were sold.

It does not account for the paperback books that amazon sells in the millions. 

That is what NPR revealed in its report. 

-Michelle-'s picture

The initial press release specifically compared ebooks and hardcovers.  I don't think there was much spin.

Amazon founder Jeff Bezos rocked the publishing world with a Kindle sales quote late yesterday. He explained: "[W]hile our hardcover sales continue to grow, the Kindle format has now overtaken the hardcover format. customers now purchase more Kindle books than hardcover books--astonishing when you consider that we've been selling hardcover books for 15 years, and Kindle books for 33 months.

Mercury's picture

I (still) buy a ton of CDs from AMZN, usually used via third party sellers.  If you want (to legally purchase anyway) CD quality digital music you still, except for a smattering of titles, have to actually buy a CD.

-Michelle-'s picture

I've got one and love it.  Each of the kids will probably get their own as we get further along in their homeschooling.  I know I would have been overjoyed to have one when I was in high school and lugging around a 50-pound backpack.


43 Steelie's picture

Despite all the hatred towards the device on the site, I own a kindle and am a big fan. 

I stare at a computer all day and the last thing I need is to stare at another LCD screen (iPad) as I read a book before going to bed. 

Kindle lets you do that (for a reasonable price) and is here to stay in some way shape or form. Free wi-fi with cheap and immediate deliveries of books is a good combo regardless.

With that being said, I'm not long AMZN and don't plan to be unless we see it down another 10-15% minimum. That P/E is still out of control (see NFLX as well)

Artful Dodger's picture

Paper shouldn't have been invented; it's so hard on the eyes, especially at bed time!

virgilcaine's picture

That drop rules out  the Efficient Market Theory.. Stocks are always appropriately priced to earnings.  The Market always is right.. lol.

J.T. Marlin's picture

How does it rule out the EMH? The stock was priced appropriately at 3:59pm based on the information that was public.

New information was released, and we now have a new equilibrium price which is 13% lower.



barthezz's picture

what logic is this recommending amzn by cramer on the day it hits 151?!?!?!



Monkey Craig's picture

is this more an income statement concern with amazon or a balance sheet concern?

TJ00's picture

Ironic that they just brought out the new Kindle DX with the improved contrast screen that is so much better than the last generation of ereaders, yes I bought one to replace my Sony Reader and am more than happy with it for reading everything from ZH via the 3G to technical papers while  the competition carries on with inferior technology or goes bust like Irex just did.

Panafrican Funktron Robot's picture

I think Kneale must have been long AMZN, he just totally QQ'ed, again.

Flying Tilapia's picture

eReaders are the word processors (think: Smith Corona) of this decade -- they have a niche, but pale in utility compared to a general purpose computer (in today's world, tablets).  It's good to see that hype bubble finally burst.

-Michelle-'s picture

I don't know.  I love to read.  Before I had kids, I read a book a day.  Now it's more like one every week or so.  While I still purchase hard copies of some books, almost all of my book purchases are now ebooks.

I wouldn't want to read these books on my computer.  I like being able to grab my Kindle to take with me.  I was stuck doing another darn 1-hr glucose today and I was able to read part of one book, highlight some notes from the book, pull up a few other books to cross-reference some ideas, and download a sample of a book mentioned on the TV in the waiting room at the lab.

Could I do that on a laptop?  Sure.  But I don't want to drag around my full-sized laptop and don't feel like buying a notebook.  I like that the Kindle basically serves one purpose: reading.  Sure, I use the basic web browser now and again, but I wouldn't miss it if they pulled the feature.

I suppose I am part of a niche.  I don't care to have all of the apps and features of an iPad, I think a phone should be used to actually talk to people, and I don't think I've sent more than two texts in my life (one of which was a response to a "Happy Mother's Day" message with no signature and consisted of "who is this?").

I think the bigger mistake for Amazon would be to try to turn the Kindle into an iPad.  I think it would be better for them to focus on one thing and do it well.

williambanzai7's picture

It just kills people to admit that Apple is a well run company. If it is not then what is?

virgilcaine's picture

A trend following system would have had you out at 120.. the rest is just noise. Amzn the kindle isn't the same as amzn the stock.. Stocks are strange critters as the critters who trade them.


You may love the kindle but doesn't mean its a time to buy the stock. Its had a nice run. Nothing is a straight line except in Gov employment prediction.


Weekly signals, amzn Buy march 23, 2009 @ 70

  sell June 27 2010 @ 120

JacksWastedLife's picture

Which means Wal-Mart and Target will fall ever worse. ^_^


romario's picture

Bought a kindle yesterday..


Intelligent people will go for that, too bad most of the people are kind of dumb and will buy that Ipad joke.

Coder's picture

Irrespective of the stock price being overvalued, the e-Ink (from any vendor) is stunning. If you haven't seen it walk three steps into a Barnes and Noble and take a look at their nook. I don't have any of the devices but am leaning towards the larger Kindle so I can read technical PDFs.

The e-ink kills any computer screen. Its like some kind of miracle or something, you can't believe it when you see it.

We homeschool also Michelle :)