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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JeremyWS's picture

AMZN : most overvalued decent company in history.

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

eclectic syncretist's picture

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

malikai's picture

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

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.

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.

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...

Fredo Corleone's picture

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

Fairwell and adieu...

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.

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...

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.

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..

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...

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.

smlbizman's picture

their warehouse workers are rumbas....

Abi Normal's picture

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

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.

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

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 $$? 

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.

NoClueSneaker's picture

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

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!

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.

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.

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...

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.

ziggy59's picture

Taxing internet shopping should help....


Sudden Debt's picture

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

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

RobD's picture

Amazon needs to sell ammo.

Unprepared's picture

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

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.

NotApplicable's picture

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

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.

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.

adr's picture

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

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.

funthea's picture

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

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.

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.

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.

lizzy36's picture


Cheap on a mutiple basis.

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

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

obejoyful's picture

who ties your shoes in the morning. 

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