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AMZN In Six Easy Charts

Tyler Durden's picture


All one can say is: "LOL"

Operating Profit and Net Income for Three Months Ended March 31, 2010-2013:


Amazon Free Cash Flow (Operating profits less CapEx):


Amazon Operating Margin %


Amazon LTM Operating Margin %


Amazon LTM Net Income %


Amazon Revenue growth (blue line) and number of total employees (red line)

Finally, the company's operating profit outlook for Q2: ($340)MM to $10MM. Surely all of the above explains why the stock is experiencing its latest massive short squeeze after hours and why it now proudly trades at a forward P/E multiple of N/M.

(thank you DE Shaw algos).


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Thu, 04/25/2013 - 16:39 | 3499534 JeremyWS
JeremyWS's picture

AMZN : most overvalued decent company in history.

Thu, 04/25/2013 - 16:43 | 3499548 Canadian Dirtlump
Canadian Dirtlump's picture

Jim Fukkin Cramer says don't get in their way.. sadly some day amazon shareholders will end up moving into Jim's old residence.. Their cars.. BWAHAHAHA

Thu, 04/25/2013 - 16:51 | 3499590 eclectic syncretist
eclectic syncretist's picture

AMZN has been overvalued for over a decade.  Bezos and Ringo Starr are the luckiest guys on the planet.

Thu, 04/25/2013 - 16:54 | 3499610 malikai
malikai's picture

Sure, now's a good time for a squeeze. Anytime, really.

Thu, 04/25/2013 - 17:11 | 3499673 NotApplicable
NotApplicable's picture

Don't bet on it. They'll be nationalized as the official government online distribution chain for junk long before they'll be allowed to go under.

Fascist choke-holds do not require profits in order to succeed. They merely need an over indebted population to weak to keep a market honest. If AMZN needs more money, you can be sure Benron will print it for them.

Thu, 04/25/2013 - 17:33 | 3499754 kaiserhoff
kaiserhoff's picture

The 11th commandment:

    Thou shalt not make fun of the Bezos.

       He's done a fine job... of selling common stock to idiot yuppies.

Thu, 04/25/2013 - 18:27 | 3500029 Seer
Seer's picture

Sad to say, but at least Amazon does something, unlike FB.  But... this has been the trend, hasn't it? a slow fall from manufacturing stuff (no longer able to pump up volumes due to collapse in growth/wages) to make-believe shit...

Thu, 04/25/2013 - 18:49 | 3500128 Fredo Corleone
Fredo Corleone's picture

Now, apply the projected fiscal drag of the implementation of the "Marketplace Fairness Act" upon forward estimates.

Fairwell and adieu...

Thu, 04/25/2013 - 19:11 | 3500217 Winston Churchill
Winston Churchill's picture

Pole axed. 

Thu, 04/25/2013 - 19:27 | 3500269 James_Cole
James_Cole's picture

He's done a fine job... of selling common stock to idiot yuppies.

With a p/e of 3151 he's done a damn good job of selling it. Wouldn't call the people buying it 'idiots' either. 

There are 'fundamentals' and then there are NFLX & AMZN.

Thu, 04/25/2013 - 19:11 | 3500177 smlbizman
smlbizman's picture

they will be the biggest sales tax collector in the world.....who ya gonna love...

and the new fair tax act will just sit about 1 foot the left of a value added tax, and with a name like that how can 1 complain...

Thu, 04/25/2013 - 17:28 | 3499722 ToNYC
ToNYC's picture

Lots of guys get lucky, the smart ones keep remembering to not screw it up by thinking they had a whole lot to do with it.

Thu, 04/25/2013 - 19:00 | 3500173 Jay Gould Esq.
Jay Gould Esq.'s picture

Some insight into billionaire Bezos' political bent:

Fri, 04/26/2013 - 00:35 | 3501302 MoneyMonkey
MoneyMonkey's picture

I can't believe you're forgetting Amazon giving gift cards for the recent gun buy back in Seattle! Seriously, look it up..

Thu, 04/25/2013 - 16:57 | 3499620 Chaffinch
Chaffinch's picture

But surely it's not all been negative news for Amazon during the last few years. We all know now what a fantastic company Amazon is to work for, and they treat their warehouse staff like real human beings, not just paying them high wages, but giving them other benefits as well.

Oh, wait, maybe I'm thinking of a different company...

Thu, 04/25/2013 - 17:17 | 3499700 adr
adr's picture

I know a few senior executives at Amazon. Dumbest people I have ever met. One of my best friends in college went to work for Amazon in 2003 in accounting. He lasted six months before he ran out of the building.

He was one of those poor guys with ethics.

Thu, 04/25/2013 - 19:01 | 3500181 smlbizman
smlbizman's picture

their warehouse workers are rumbas....

Thu, 04/25/2013 - 17:23 | 3499721 Abi Normal
Abi Normal's picture

And Soros is investing in JCPenny, I think he has finally snapped!

Thu, 04/25/2013 - 17:56 | 3499878 scatterbrains
scatterbrains's picture

If that true than he's been tipped off that postal shipping rates are about to double and a federal online sales tax is about to slap the shit out of AMZN until it's cheaper to just drive to the mall.

Thu, 04/25/2013 - 17:29 | 3499734 BlueStreet
BlueStreet's picture

Bring back EBITDA. 

Thu, 04/25/2013 - 18:29 | 3500035 Groundhog Day
Groundhog Day's picture

Here's an experience i had on AMZN.  I once sold an extra "like new" computer on Amazon for 40% less then all other sellers of the same product just so i can get rid of one more thing out of my house (i'm not a professional seller by any means).  I delivered it and got paid on it.  After a few weeks the buyer decided she didn't get what she paid for and sent a letter complaining about it.  I did not receive any instructions to take any further actions.  15-20 days later i see a charge on my amex for the amount i had received.  I figured the buyer asked for a refund and amzn obliged.  No problem.  Here's the thing, since I didn't respond to the buyer's orginal email (Since it didn;t state it anywhere in the email) she is not obligated to return my computer.  So a kept my computer for free and AMZN did not assist me at all in trying to retieve what was mine.  It was a 400 mistake on my part, but it will cost them tens of thousnads in future business from me.  I now have no problem paying for things slightly higher on other websites

Thu, 04/25/2013 - 20:41 | 3500606 Oleander
Oleander's picture

I ordered an item last night and it arrived today. Less than 24 hrs for delivery and we use Prime with free shipping. How can they make $$? 

Thu, 04/25/2013 - 21:13 | 3500712 monoloco
monoloco's picture

I bought a $400 camera lens through Amazon, it was delivered without the hood, Amazon refunded $165, the retail value of the hood was $59, so they screwed their vendor for $106.

Thu, 04/25/2013 - 20:48 | 3500627 NoClueSneaker
NoClueSneaker's picture

No fuckin' chance . The most overvalued undecent company ist fuckin' JP Morgue .

Thu, 04/25/2013 - 16:41 | 3499542 gjp
gjp's picture

But Bezos said we should focus on free cash flow, not earnings.  Oh wait, FCF sucks too?  Oh, well, Ben's got our backs!

Thu, 04/25/2013 - 16:49 | 3499574 Cdad
Cdad's picture

The criminal syndicate known as Wall Street pays no attention to fundamentals anymore.  It's all just a leveraged bubble riding game, courtesy of our central bank

Thank you, Mr. Bernanke, for this wasteland you have made for us.

Thu, 04/25/2013 - 19:43 | 3500345 spastic_colon
spastic_colon's picture

just like AAPL on earnings day, all of the volatility and money will be made after market and before open tomorrow, when AMZN will then again trade flat.

Thu, 04/25/2013 - 16:53 | 3499598 vortmax
vortmax's picture

Perhaps Jeff should spend more time in the boardroom instead of occupying himself with plucking dead rocket engines out of the Atlantic...

Thu, 04/25/2013 - 16:58 | 3499624 Pure Evil
Pure Evil's picture

I think they should reinterpret the last graph as when the amount of money accumulated goes up, the amount of comparable brain power goes down.

plucking dead rocket engines out of the Atlantic.........indeed.

Thu, 04/25/2013 - 16:42 | 3499544 ziggy59
ziggy59's picture

Taxing internet shopping should help....


Thu, 04/25/2013 - 17:14 | 3499686 Sudden Debt
Sudden Debt's picture

well... I pay taxes on Ebay already. 7% on everything I buy.

Thu, 04/25/2013 - 18:01 | 3499905 koaj
koaj's picture

it should only be in the state you reside if you buy from a merchant in that state..unless you live in Kalifornistan

Thu, 04/25/2013 - 16:44 | 3499549 RobD
RobD's picture

Amazon needs to sell ammo.

Thu, 04/25/2013 - 16:46 | 3499565 Unprepared
Unprepared's picture

... and sinkable boats... and pressure cookers

Thu, 04/25/2013 - 16:48 | 3499579 RobD
RobD's picture

The do sell pressure cookers, bought one a few years back from them for canning. Ah, really we do use it for canning.

Thu, 04/25/2013 - 17:00 | 3499627 NotApplicable
NotApplicable's picture

I'm pretty happy that I bought my cookers at the thrift shop/garage sales.

Thu, 04/25/2013 - 19:58 | 3500420 Tijuana Donkey Show
Tijuana Donkey Show's picture

Make sure you test or replace the gauges, if they get out of calibration, you can end up with a bad case of food poisoning or death. I suggest getting new gauges if you don't know the history. Also look at Tattler reusable lids, they are worth their weight in gold.

Thu, 04/25/2013 - 17:07 | 3499656 catacl1sm
catacl1sm's picture

I've been meaning to get a pressure cooker for canning for some time. I will likely buy it from Amazon, like most things that I purchase.

Thu, 04/25/2013 - 17:12 | 3499681 adr
adr's picture

Just make sure you buy some fireworks, BBs, batteries, and a pre paid unlocked cell phone at the same time too.

Thu, 04/25/2013 - 18:15 | 3499966 DeadFred
DeadFred's picture

If you see an Amazon ad on ZH click on it and do your month's shopping, Tyler will get a hefty cut. A good cause.

Thu, 04/25/2013 - 17:14 | 3499685 funthea
funthea's picture

Did you register that pressure cooker? Especially if it is high capacity?

Thu, 04/25/2013 - 17:00 | 3499634 andrewp111
andrewp111's picture

If they can get any.

Thu, 04/25/2013 - 16:44 | 3499550 InconvenientCou...
InconvenientCounterParty's picture

Internet tax

Thu, 04/25/2013 - 16:49 | 3499583 Bastiat
Bastiat's picture

They've been charging CA sales tax for the past year or so--may explain some of the loss.  Making that universal will cause real pain.

Thu, 04/25/2013 - 17:39 | 3499552 syntaxterror
syntaxterror's picture

I'm a buyer as soon as their margins hit 0.10% and the Forward PE is 20,000 and the PEG ratio is 30.

Thu, 04/25/2013 - 16:45 | 3499554 Cursive
Cursive's picture

Looking at Amazon's stock vs. operations, it's easy to see how Henry Blodget (bought and paid for by Jeff Bezos) can say Paul Krugman has won.

Thu, 04/25/2013 - 16:46 | 3499559 lizzy36
lizzy36's picture


Cheap on a mutiple basis.

Bezos is a genius!!!! Invested his couch change in Business Insider.

Don't forget bitchez......BTMFD.

Thu, 04/25/2013 - 17:07 | 3499660 obejoyful
obejoyful's picture

who ties your shoes in the morning. 

Thu, 04/25/2013 - 17:53 | 3499869 knukles
knukles's picture

Maxine Waters

Thu, 04/25/2013 - 16:46 | 3499560 PontifexMaximus
PontifexMaximus's picture

Who cares? You just have to believe in fairy tales, as long as a bunch of HF need the stock to move north....algos do the dirty work

Thu, 04/25/2013 - 17:42 | 3499816 DosZap
DosZap's picture

The Internet tax is going to put HUNDREDS of thousands of people out of work.And a lot of Net firms out of business.

The lack of an Net tax, was the prime reason most folks bought online.That plus you found the same items as your local suppliers,at $500-700.00 LESS -tax,and they somehow could still afford to deliver it from almost any where to your door step FREE Freight.

(Esp Big screen TV's.).Local vendors charge $75-$100+ for that.

Thu, 04/25/2013 - 16:47 | 3499561 francis_sawyer
francis_sawyer's picture

Nymphoid Barbarians in Dinosaur Hell bitchez...

Thu, 04/25/2013 - 16:46 | 3499562 The Abstraction...
The Abstraction of Justice's picture

Seeing all the PC bullshit coming out of, they dont deserve to be solvent.

Thu, 04/25/2013 - 16:46 | 3499568 Waterfallsparkles
Waterfallsparkles's picture

Yet, Wall Street buys it because so many people short it.  It obviously is over priced for its earnings and cash flow.

I stay away from it.  I would not short or buy it.

Thu, 04/25/2013 - 16:46 | 3499570 tawse57
tawse57's picture

All one can say is: "LOL"


Thanks Tyler - that made me laugh out loud when I read that and then looked at the charts.

Thu, 04/25/2013 - 16:48 | 3499571 sunstreaker
sunstreaker's picture

The Financial Stability Board (FSB) develops the policy makers’ strategic response to the banking crisis and directs its implementation:


Its FSB Plenary is comprised of the most senior representatives from Central Banks and Finance Ministers from around the world, as well as the most senior representatives from the main international bodies governing finance. FSB’s current chairman is Mark Carney, his predecessor Mario Draghi.


The FSB developed the so-called Bail-In. The main working paper is “Key Attributes of Effective Resolution Regimes for Financial Institutions.” It is candid and succinct:


Equally to the point is the progress report from November 1st, 2012. It leaves no doubt that the Bail-In is indeed a template for many jurisdictions, amongst others those of the US and the EU.


Please take a moment to browse the files contained in the links. Please spread the news.


I urge Zerohedge to write its own report.


Thu, 04/25/2013 - 16:54 | 3499606 YHC-FTSE
YHC-FTSE's picture

*FSB Mark Carney (New BoE Chairman from July)

Thanks.  Just bookmarking it for later read.

Thu, 04/25/2013 - 17:05 | 3499647 NotApplicable
NotApplicable's picture

You know what they say, "The best way to rob a bank is to force people to own one."

Wait... what?

Thu, 04/25/2013 - 16:48 | 3499578 rosiescenario
rosiescenario's picture

Yeah, but look at their momentum and all the intangible value they have created.....

Thu, 04/25/2013 - 16:58 | 3499582 CaptainSpaulding
CaptainSpaulding's picture

Bozos has been around a long time. It wasn't too long ago when Amzn was a $ 12.00 stock. I just know the man gets me my shit delivered on time. Bezos is the goto guy.

Thu, 04/25/2013 - 16:50 | 3499586 bdub2
bdub2's picture

in all fairness...they're still only selling books. Wait till they branch out. 

Thu, 04/25/2013 - 16:50 | 3499592 sitenine
sitenine's picture

AMZN reminds me of an old joke.

A couple of hillbillies decided to trade chickens. They bought a truck, and they made deals with a few suppliers and buyers. The plan was to pick up the chickens and pay $3.00 per chicken, and then they would deliver the chickens for $2.50 per chicken. After a week of operation, one of the hillbillies noticed that the cash was running out. The other hillbilly turned to him and said, "yup, we're going to need a bigger truck."

Thu, 04/25/2013 - 17:01 | 3499639 NotApplicable
NotApplicable's picture

Sounds more like award winning economists, rather than hillbillies.

Thu, 04/25/2013 - 17:04 | 3499644 Major Major Major
Major Major Major's picture

This guy I know, Milo, used to buy eggs at seven cents a piece and sell them at five cents... in order to make a profit.

Thu, 04/25/2013 - 17:18 | 3499705 camaro68ss
camaro68ss's picture

let me guess, Milo now works under the brenake at the Federal Reserve?

Thu, 04/25/2013 - 17:36 | 3499771 philosophers bone
philosophers bone's picture

Like the person who goes to the casino with $100, leaves with $20 and tells you that they won $20.  Lots of 'em out there.

Thu, 04/25/2013 - 17:38 | 3499781 Common_Cents22
Common_Cents22's picture

make it up on volume

Fri, 04/26/2013 - 12:57 | 3502940 Turpentine Soul
Turpentine Soul's picture

"But I make a profit of three and a quarter cents an egg by selling them for four and a quarter cents an egg to the people in Malta. I buy them from for seven cents an egg. Of course, I don't make the profit. The syndicate makes the profit. And everybody has a share."

Thu, 04/25/2013 - 16:52 | 3499595 toros
toros's picture

Moar Bozo

Thu, 04/25/2013 - 16:52 | 3499600 BGO
BGO's picture

The Net Income chart really brings the LULZ. Seems like just yesterday that Amazon was claiming to be excited about pending online sales tax legislation. Wonder if there's a chart that shows how many tax averse consumers Amazon can lose before it goes tits up. 

Thu, 04/25/2013 - 17:40 | 3499794 philosophers bone
philosophers bone's picture

Yes, we need to know the Adjusted Pro Forma Blended Run Rate Non-Recurring 2020 Net Income.  Or else how can we make an informed investment decision? 

Thu, 04/25/2013 - 16:54 | 3499604 youngman
youngman's picture

Do they still report Pro Forma income..I remember when that was big...the taxes will slow them down....

Thu, 04/25/2013 - 16:55 | 3499617 WTF_247
WTF_247's picture

AMZN is  one to never mess around with.  It seems no matter what the earnings show it just goes up.  I have seen top and bottom line misses - gaps 15 down and within 2 weeks its net higher.  Learned many lessons about shorthing stuff like this.  NFLX is another.  Just not worth it.  Eventually you are likely correct but most of the time "eventually" never happens.  You have such massive losses you are out before eventually comes.


Thu, 04/25/2013 - 16:59 | 3499626 SmallerGovNow2
SmallerGovNow2's picture

hard to fight 85 billion per month...

Thu, 04/25/2013 - 17:03 | 3499640 NotApplicable
NotApplicable's picture

Even harder to fight 140 billion.

Thu, 04/25/2013 - 17:58 | 3499884 knukles
knukles's picture

That's why you don't go to war with the Chinesses

Thu, 04/25/2013 - 16:55 | 3499618 Uncle Zuzu
Uncle Zuzu's picture

Growing very nicely and only 2x sales.  I dare you to short it. North America looks solid. When International turns a profit, all these charts will be irrelevant.

Thu, 04/25/2013 - 17:25 | 3499720 Bam_Man
Bam_Man's picture

"only 2x sales"


They are a retailer. They don't make what they sell. Sales per share does not apply to them any more than it applies to Wal-Mart.

Thu, 04/25/2013 - 17:25 | 3499623 Bam_Man
Bam_Man's picture

I can't wait for AMZN and AAPL to have the same share price. It's coming.

AMZN $0/share in Earnings, $0/share in Dividends, $5/share in Net Cash


AAPL $40/share in Earnings, $12/share in Dividends, $150/share in Net Cash

Efficient markets....

Thu, 04/25/2013 - 16:58 | 3499625 FreeNewEnergy
FreeNewEnergy's picture

Amazon is the poster child for "we make up for it in volume." WTF?

Thu, 04/25/2013 - 16:59 | 3499630 Spastica Rex
Spastica Rex's picture

I just bought a toilet from Amazon.

Thu, 04/25/2013 - 17:02 | 3499642 NotApplicable
NotApplicable's picture

No shit?

Thu, 04/25/2013 - 17:10 | 3499674 Major Major Major
Major Major Major's picture

Here I sit broken hearted, paid a [silver] dime and only farted.

Thu, 04/25/2013 - 17:00 | 3499631 fishwharf
fishwharf's picture

I like Amazon.  I buy from them all the time.  Just had some photo supplies delivered today.  Could not care less about the charts and graphs.

Thu, 04/25/2013 - 17:14 | 3499683 gjp
gjp's picture

If they are ever going to actually justify their share price, they are going to have to start cashing in on loyal customers like you by raising prices.

Thu, 04/25/2013 - 17:00 | 3499638 azengrcat
azengrcat's picture

In other news George Soros owns a metric f-ton of PCP

Thu, 04/25/2013 - 17:06 | 3499658 Charlie
Charlie's picture

I hope it goes to $1000, then i'll just buy a ton of puts.

Thu, 04/25/2013 - 17:08 | 3499659 zipit
zipit's picture

Sixe easy charts that spell "R A L L Y"

Thu, 04/25/2013 - 17:07 | 3499663 adr
adr's picture

Bezos even looks like the shady guy on the corner telling you to come to his store with bars on the windows.

"No, no, no. Iz retail, bought myself. Very good product, haz Sony gutz. You buy, throw in blender free. Wife happy, you happy, I happy."

It amazes me how the internet erases the stigma of buying black market and counterfeit goods. People wouldn't be caught dead buying a fake purse in a back alley, but they are proud to boast about buying $700 purses for $60 on Amazon.

My idiot father in law bought a pair of Bowers and Wilkins on Amazon, $1300 retail, for $275 from some Amazon marketplace dealer. He bragged about the deal. I said, "You know those are fake right?" He of course argued they were real and Amazon can't sell fakes. I said, "Enjoy your Coby speakers with a fancy B&W logo."

Thu, 04/25/2013 - 17:10 | 3499666 ebworthen
ebworthen's picture

And what happens to Amazon if the CONgress passes the Internet tax bill?


I was looking for an iPod Touch 5th gen. for my Daughter, Best Buy had it on sale but with taxes I would pay more at Best Buy versus Amazon. 

The Best Buy sales rep. said they would price match "if" it was sold by Amazon and not a third party.  Um...most of Amazon's stock is sold through another outlet via Amazon.

I asked if they discounted for the amount of tax I would have to pay at Best Buy and he said "no".  So, I asked, why would I buy it here if I have to pay $17 more being taxed?  He just shrugged.

However, if Amazon is forced to charge tax on any sales (already the case for CA) it will hurt their profit margin that much more.

Thu, 04/25/2013 - 17:17 | 3499703 NotApplicable
NotApplicable's picture

Only in the short term. Longer term, they will likely be the global leader in selling their tax collecting service to everyone else who cannot scale globally.

Especially once their buddies pass a bunch more laws to prevent them from being undercut by those pesky, unwanted competitors.

In other words, Amazon will become the single point of entry for payola, and govs will leave them alone as long as they receive their tribute.

Thu, 04/25/2013 - 17:09 | 3499667 bnbdnb
bnbdnb's picture

Where's its stock chart?

Thu, 04/25/2013 - 17:19 | 3499696 ebworthen
ebworthen's picture

Basic 5 year chart:

Reminds me of AAPL up to about three months ago:

(both links open in new tab/window)

Thu, 04/25/2013 - 17:10 | 3499670 NoWayJose
NoWayJose's picture

Sorry to hear about your woes Amazon, but Walmart is having just as much trouble with inventory and sales.  Maybe it isn't really you - it's just 'the weather'...  Or maybe, the economy isn't quite as good as the MSM says it is...  Nah - gotta be the weather...

Thu, 04/25/2013 - 17:11 | 3499672 Racer
Racer's picture

The share price went up on that news?

Oh I presume it was because they beat expectations that had been gradually lowered over the last few weeks and they were better than expected

What a farce

Thu, 04/25/2013 - 17:19 | 3499707 NotApplicable
NotApplicable's picture

"The important thing to remember here is..."

Thu, 04/25/2013 - 17:33 | 3499748 ebworthen
ebworthen's picture

Wasn't too long ago that AAPL was the darling of the hedgies and algos.

Won't be too long before AMZN suffers the same fate as AAPL and there will be "a new kid in town".

Thu, 04/25/2013 - 18:34 | 3500061 edb5s
edb5s's picture


Thu, 04/25/2013 - 17:11 | 3499675 docinthehouse
docinthehouse's picture

Will all the central banks please step up and BUY THE CRAP out of this stock!!!!!!!!!!! won't be a crappy stock!  

ahhhh...Bernanke's folly..........Does he practice his violin while Rome burns??????

The brutalilty of the unwind will make Nero look like a movie star.

Feel really bad for kids.  They will learn what the value of money is.

How could anyone be a Krugman???? 

Oh that's right....Obama won!


Millions actually voted for him....four or five times!


Thu, 04/25/2013 - 17:12 | 3499684 thismarketisrigged
thismarketisrigged's picture

can someone please explain to me why this company even has to report earnings?


every quarter is the same horrible report, yet the stock pops no matter how bad. imagine what will happen if they ever had a decent quarter.

Thu, 04/25/2013 - 17:18 | 3499688 vulcanraven
vulcanraven's picture

Can we see the same charts for Netflix please?

Thu, 04/25/2013 - 17:15 | 3499690 The Dancer
The Dancer's picture

I think that there's something below the radar with this company...emphasis on"the company"!

Thu, 04/25/2013 - 20:22 | 3500545 Disenchanted
Disenchanted's picture

You mean that decade long deal with Spookville Central helping them get on a cloud?


I'll not be sending any of my bu$ine$$ Amazon's way anytime soon.

Thu, 04/25/2013 - 17:15 | 3499691 Undecided
Undecided's picture


The global slowdown is hinting at a ‘major re-alignment of the markets’ — and it won’t be pretty
Thu, 04/25/2013 - 17:23 | 3499712 NotApplicable
NotApplicable's picture

According to my secret decoder ring, this means war.

*checks headlines*

Syria, chemical weapons, strong words.

Yep. Now all we need is for Colon Pal to wave around a magic vial of pixie dust to start the ensuing shitstorm.

Thu, 04/25/2013 - 17:31 | 3499739 NotApplicable
NotApplicable's picture

In other news, drone season has officially opened. No word on limits yet, though.

Thu, 04/25/2013 - 22:45 | 3501007 Westcoastliberal
Westcoastliberal's picture

Can you believe this shit?  It's like a re-run, except this time it Hagel instead of Powell.  And truth is, the rebels are probably using chemical weapons supplied by U.S. That whole deal can be switched off in a heartbeat by Hagel.  It's another oil-control grab.

Thu, 04/25/2013 - 17:14 | 3499692 Sudden Debt
Sudden Debt's picture

Trendline.... the most ignored indicator if it's not bullish...

Thu, 04/25/2013 - 17:16 | 3499695 Manipuflation
Manipuflation's picture

OT:  May I ask a question?  Great, thanks.  Glad you all had a chance to vote on it.  Is it just me or has ZH lost some volume of readership lately?  The question is why that would that be case?  What, the Cow Jones is so good that no one listens to reason anymore?  You tell me.


Or are we just all throwing in the towel and saying "to hell with it".  It has to be true that we are all sick of watching our nation turn into a shithole.  The years are starting to pile up here on me, and I ain't seeing shit that I like much of anywhere save for the LCS but now that's fucked up too.  I tried for years to stop it and I can punch sand too because I accomplished the same.  We are so fucked.  I planned on going to hell the day I was born but I have young children so I can't go just yet.  I only want them to be able to think for themselves.


Keep stacking.  It is really all you can do.

Thu, 04/25/2013 - 17:26 | 3499728 NotApplicable
NotApplicable's picture

Whenever I come here from a browser without Ad Block, I'm surprised that anyone still manages to get the page to load.

Thu, 04/25/2013 - 17:44 | 3499823 Tyler Durden
Tyler Durden's picture

Zero Hedge had its record traffic day (over 2.2 million hits) one week ago. All is well.

Thu, 04/25/2013 - 18:34 | 3500062 Manipuflation
Manipuflation's picture

That's good to hear Tyler and ZH deserves it.  Now if we could just get everyone else to listen to ZH and it's merry band of commentators sans a few, we might have a very slight chance for the snowball that we currently have in hell... Nope, nevermind.  This financial mess is going to be ugly as you well know.  More and more people that I meet on the street are just as disgusted anymore(but don't know why) including the ones who are not special snowflakes and I observe that everyday now.


Since you replied to my comment Tyler, I would like to ask you if you are ever going to make up another batch of those shirts with the arrow going through the bottom of the chart?  This one in fact...


I know that you Tylers are not about making making fiat profit off that sort of thing but I really want one.  In fact, I want about ten of them.  I have been waiting for like two years now for new stock.  Hello demand?     

Thu, 04/25/2013 - 22:42 | 3500994 Westcoastliberal
Westcoastliberal's picture

Congrats Tyler & all the crew at ZH.  You guys are the bright spot of my day and I appreciate your candid, straightforward approach.

Fri, 04/26/2013 - 03:38 | 3501433 Dealyer Turdin
Dealyer Turdin's picture

The only real gold is you.  Our culture is spun, it doesn't have the answers.  I don't have the answer but I know the answer exists.  Sometimes you win the fight when you say ow! Sometimes you only win when you train past the pain signals.

  When we crap, we stick it in the water.  We put lead in gasoline and paint and then discuss history.  We destroy cultures with intimate knowledge of local herbs, animals, conditions and signs of future events.  I cannot tell you therefore what the future will be.  I can tell you that feeling pain is going to remain important as a feature of surviving. Smell touch, feel, see, witness the tremors of your heart as you make even apparently small decisions.

     The answer, when it comes, will shock us with its simplicity, we need simplicity too much for that not to be a chief ingredient.

I don't much like hippies though.

Thu, 04/25/2013 - 17:17 | 3499697 cash_for_tungsten
cash_for_tungsten's picture

Amazon will not stop with their break-even pricing combined with the lowest cost infrastructure possible until every last retailer is put out of business. Although every single non-food store in my neighboorhood barring the highest end luxury is on its last legs there are still a few stragglers out there to be crushed. Most earnings are fake GAAP garbage anyway so it's better to look at the endgame for AMZN which is total domination of all shopping.

Thu, 04/25/2013 - 21:27 | 3500764 monoloco
monoloco's picture

That will be the only way they will ever be profitable.

Thu, 04/25/2013 - 17:26 | 3499701 The Dancer
The Dancer's picture

And look at that big reversal! Only down

Thu, 04/25/2013 - 17:26 | 3499724 monopoly
monopoly's picture

Well, maybe, just maybe reality will set in. Now down 10 bucks. Ya know, I like the company a lot. Good service, free shipping, good response time. But maybe at about a price of45 it would be priced just about right. Lets see how long before it gets there. I wonder if NFLX will get there first?

What a farce these markets are. 

Thu, 04/25/2013 - 17:29 | 3499735 Simit Patel
Simit Patel's picture

i'll take the opposite stance here. amzn has a market cap of $121B. goog is $267. in due time, amzn will surpass goog. i have an inflationary bias so that means i anticipate amzn doubling and that is the bet i am making, though if the world is more deflationary than i anticipate it could mean goog falls much more than amzn does.

amzn trades like a growth stock because it is one. no one values startup using P/E because it doesn't make sense to do so. earnings will explode within 5 years.  


Thu, 04/25/2013 - 17:40 | 3499801 Bam_Man
Bam_Man's picture


AMZN was a "startup" in 1996.

You'd think they would actually be earning some money by now.

Thu, 04/25/2013 - 17:36 | 3499764 q99x2
q99x2's picture

And everything will soon be taxed as the FEDs begin shutting down the Internet.

I bought a book for like 9 bucks on Amazon a while back. After taxes and shipping it was over $16.

The company has a bankster problem.

Thu, 04/25/2013 - 17:47 | 3499844 DosZap
DosZap's picture

Well I buy all  my name brand paper towels and bathroom tissue in bulk, free of tax, and delivered free to my door, at a THIRD the cost of local stores(even WalMurt/Sams/Costcos), and I do not have to spend an hour and drive 30 miles to do it,of fight parking and the crowds.

All my vendors around here price inventory  to the income levels of the area demographics.(high)

Thu, 04/25/2013 - 17:44 | 3499831 Common_Cents22
Common_Cents22's picture

you idiots, less is more

Thu, 04/25/2013 - 17:49 | 3499855 neutrinoman
neutrinoman's picture

The Amazon P/E is NaN, NaN, NaN, ....

Thu, 04/25/2013 - 17:50 | 3499856 devo
devo's picture

That internet tax is going to kill this company. I have bought one item off the site since they enacted it.

Fri, 04/26/2013 - 01:01 | 3501331 MoneyMonkey
MoneyMonkey's picture

You are sooooo wrong. Amzn has seen a neg. correlation of tax vs.. Gross spend in states with tax. You jackasses don't understand nexus laws.

Amzn gets nexus in state, builds FC's in that state (ie Texas and Cali ) and can now offer same day shipping. CoNVIENIENCE FARRRRR outweighs cost hist of tax.

Thu, 04/25/2013 - 17:57 | 3499881 Catullus
Catullus's picture

To be fair, a lot of that is R&D.

Ive owned it since 2009. I use their services and half the startups I've seen use the cloud services.

They keep dumping money into the cloud and not calling it capex. But it should be.

And sales tax is not a big deal. I'm still not wasting my weekends going to a box store for bullshit.

Thu, 04/25/2013 - 18:02 | 3499904 quasimodo
quasimodo's picture


Thu, 04/25/2013 - 18:37 | 3500076 W T F II
W T F II's picture

Central Banks Should Own AMZN....

Thu, 04/25/2013 - 19:59 | 3500424 sbenard
sbenard's picture

I sent a message to Amazon yesterday that if the internet sales tax passes in Congress, I will probably never do business with them again! I meant it! They wrote me back and said they would send my message to the appropriate people.

Harry Screed's internet sales tax will KILL online sales because now, in addition to having to pay for shipping, we would have to pay sales tax, too! That's a double whammy that will decimate online sales.

But I suspect they'll do it anyway! Tyranny is here! It has found a home in America!

Thu, 04/25/2013 - 20:29 | 3500568 mendigo
mendigo's picture

I like Amazon as a company but still I worry what will happen after they succeed in driving the retail stores out of business.
Also I think that they are an example of what is a big problem in us economy wherein losing operations like sears or jcp can stay in business pretty much indefinitely because they have access to nearly free money while smaller operations have to fight major headwinds. The the loser operations drag down the whole market. I suspect this is what is happening.

Thu, 04/25/2013 - 21:05 | 3500674 e.blair
e.blair's picture

Poor people don't buys shit at amazon because they don't have credit cards.  Smart people don't shop at amazon more than they need to because they see all the scams.  For example, searching has become harder and harder; if you are looking for the lowest price you have to sift through a bunch of kindle versions.  Then if you find what you are looking for, a lot of the time you'll find that they don't ship to your country, even if you are in Western Europe and the vendor is in Western Europe.  So you have to go back and find another vendor who is of course charging more.  And even after all that, you don't know what the shipping is going to be until the end.  The shipping is 2EUR higher about 95% of the time.  Bait and switch, bait and switch.  That leaves rich dumb people and there aren't enough to keep amazon going. 

Bezos is such a psycho global control freak job, he bought Abebooks which was the site most popular with real book sellers.  I don't know what they think of it now.  So he owns the two biggest book web sites.

Freaks like Bezos always think they can "nudge" consumers and somehow consumers aren't going to notice.  I used to find occasional deals on amazon because the bookselller was selling it at a low price.  But now psyco boy Bezos has his software slam the door on anything that is a good deal.  Cheaper the book, the higher the shipping.  Bezos doesn't think people notice.  Nine year old travel book, you would get in a used store for a buck or two, with shipping should cost you no more than five bucks.  Psyco boy thinks he can get you for 9.

The end result is I just get off my ass and get better and better at using the library reserve system. 

This is interesting because I am probably the median amazon user--almost all for books--but just in the last year, I have cut my purchases in half because of his BS.  Most books aren't necessities, even if you are an avid reader, and there are lots of alternatives to amazon.  Amazon's ONLY advantage is convenience.  The info is there, and the site is familiar.  But Bezos' insatiable psycho scamming of his consumer is wasting time.  He is killing the convenience of his site.

Should I short that stock?  Hedge with an index? 

Thu, 04/25/2013 - 23:11 | 3501092 Common_Cents22
Common_Cents22's picture

amazon still sells books?    It's been quite convenient and cheap for buying a variety of other things for me.   I think they are working on a model for same day delivery for products as well.   They are making a big charge in putting many brick n mortar retailers out of biz for sure.

Fri, 04/26/2013 - 04:32 | 3501476 Paramount leader
Paramount leader's picture

AMaZiNgly worth $125B in marketcap after paying whatever markdown they take on their inventory, if they have to go for a firesale to pay their creditors.

Operating margin is less than Tax increase and if people see AMZN price on its shopping cart same as big retail then they will just go and pick it up after their normal SHROOMING

Its liabilities grow WAAAY faster than its market cap to be fair. Dont forget to put that graph next time tyler


Fri, 04/26/2013 - 11:14 | 3502449 MedicalQuack
MedicalQuack's picture

DE Shaw...the folks that ignore their internal risk management quants....or used to maybe?  This made add some fuel to the "LOL":) 

I have used a couple of videos from Cathy O"neill who worked at DE Shaw back during the crisis and she's good, no nonsense, brilliant on models.  In this post I made about modeling for inequality, she talks a little bit (as much as she can with opinions, etc.) about working for DE Shaw and doing the quant work for Larry Summers.  Stay tuned to the end...Q and A...does he has aspergers syndrome she asks? 

All spoken very professionally and she's working on the Occupy alternative bank committee.  She spent her time there and didn't buy in to the mentality and talks about it, as much as she can without violating any exit interview contracts.  Basically she was out of academia and just wanted to do her job and use her talents and the education she got was not what she expected.

She did another video with PBS a while back and I dovetailed it into my post on the PBS 401k story.  "What do hedge funds do?  They skim off retirement funds"...she sentence. I keep this video in my blog footer as one of my education videos where people smarter than me offer some real good information for all.


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