This page has been archived and commenting is disabled.
The Amazin' Amazon Delayed Algo Reaction
It seems for a brief period, Amazon traders were in denial... but a mere 12 hours after reading our six simple charts explaining the ugluy reality behind this greatest of all momentum stocks, it seems the algos have finally got the message and the game-theoretical first mover advantage is kicking in... Amazon is down almost 6% this morning (and down almost $40 from its post-earnings highs) suggests the Bezos magic money machine is fading fast.
»
- 9532 reads
- Printer-friendly version
- Send to friend
- advertisements -
Hey, that's a $150B company you're talking about bub. lulz lulz lulz
Amazon is a great business and business model, the question being 'at what price?'
So much for "droning" your way to prosperity. Take note Obama.
Everything is about America illegally pink misting Koran infected savages, even moves in online shopping stocks. Thanks for pointing that out.
amazon river is running dry? can't happen oh that amazon, never mind.
The Amazon is Running Yellow by I P Dailey.
So... is it now only priced at 1990 times earnings or 2000 PE?
clearly it reached some form of support...
maybe they should cut another piece of their margins?
Up 20% when Bezos announced his "magical" 3d phone. And he might follow that up with more talk about drones and robots. That always gets the traders vaginas wet.
Is that the place where they run ads for other people to sell stuff to you?
Lets not forget it is down about $90.00 bucks from its all time high, just a few short months ago. Still want to invest in this broken market?
Houston we have a problem
It would seem to me the decimal point needs to move one place to the left in the price to be reasonably valued.
Is AMZN systemically too big to fail yet? Just want to understand when it's taxpayer bailout will be arriving /s
if you can't figure out that the Fed has been putting a bid under this piece of shit steadily since 2009 then I just don't know what to tell ya. It's one of the Too Important for Hopium turds.
ZH, next time can you email your article to us registered readers before you publish it ?
AMZN decided to get uppity and start charging sales tax in a lot of states. And then they decided to raise the price of their Prime membership. Hence AMZN's competitive advantage just disappeared. And now they will be faced with the cold reality of their stupid decisions.
Just trying to get the margins above 0%. Somebody mentioned to Bezos that they should at least try to turn a profit.
They take a piggish cut (12%+ if I remember correctly) of vendors' sales on their site. And yet they still can't make money.
Around 20% but it depends on the product (less for some) and part of the slice is the inadequate amount for shipping the product. They have a swag of fees to siphon your cash flow and sh*ft the vendors at every point including acceptance of inane returns. The 12% slice you cite was several years back
Costco propaganda says they only mark up 15% from their purchase price. They do have logistics too, big time, plus physical stores with people in them, reverse logistics from returns, etc.
I believe they have to follow State law on the sales tax issue. Politicians need revenue to spread around to their grifters.
They were so eager to build brick and mortar facilities so that they could start collecting taxes in those states where the facilities were located (all in the name of "faster shipping"). Quite pathetic.
In SC they built the warehouses to postpone the direct collection of sales tax for a few more years. It is the mobsters who impose it, not the vendors.
Congresscritters were threatening Legislation, ie starting the shakedown process, and Amazon, being tiny compared to government, operating no jails, having no armies, SWAT teams, seizure powers, etc read the game-theoretical tea leaves accurately, and tried to buy a few years by jumping ahead of some ill begotten thousand page omnibus late night congressional abortion fouling up the works.
Oh Yeah, Amazon was so exited to act as the money man for no pay to extract $ for government.
I think people forgot that a stock's price used to have real meaning regarding the profitability of a company, and its future earnings potential. Stock prices now are just a speculative reflection of how confident traders are that the Fed will continue pounding money into the system.
Wake me when AMZN is trading at 20 USD
I think the clear solution is for bezos to announce the development of shipment via star trek transporters and shuttles. Drone deliveries are sooooo yesterweek.
in the end bezos will have the all the money AND own the entire company ala michael dell. KRAPitalism at its finest.
Amazon down 8%. That's a start. Let's see what happens next.
Its obvious the weather got better..so people went back to the stores and not online..
Short AMZN @ $305. You'll thank me for it later......
You have a call on line 3. He says his name is Margin.
Amazon is a joke. All they've done is undercut the brick and mortar stores by offering prcies that are so freakin low that there prfoit line is zero. Just wait until all 50 States start to pay taxes on all internet sales and then you have to pay for your shipping. RIP Amazon.
If the current postal rates keep rising at a rate of 3-4% twice a year more sellers will go under when they get hit with the other costs same time such as sales tax etc.
I disagree. There will always be great opportunities in ecommerce. However, the Amazon model is a rotten one, coupled with Amazin arrogance and you have a company not worthy of a lofty stock price.
As technology improves, more companies will take care of their own ecommerce sales rather than truck it to Amazon and give them 15% commission to fulfil the order.
Amazon will likely try to buy off politicians to pass laws which prevent competition.
Well as someone who has both a brick and mortor store and an ecommerce website, i have to say that the only thing on the tinernet that makes money is PORN. Companies like Amazon come and go.
I hade a phone call from amazon once asking if i wanted to sell my merchandise through them, i basically told them to go go hell when i learned of there " cut " they take off the top. There model is based on Mafia tactics.
And like i said Amazon'e profit line is Zero from all of there under cutting.
Right. They get as many decent merchants as possible to reach into their own pocketbooks and ship pallets of merchandise to Amazon's fulfilment centers. Then, I believe, they automatically give new merchants most of sales for whatever items they shipped.
These merchants drunk with sales, send 20x more merchandise to Amazon, and start planning how they'll spend all the money coming in. Only then Amazon bumps them from the Buy Box, forcing merchants to drop price so they even lose money on every sale, then Amazon charges the merchants a storage fee for all the crap they are now storing for the merchant, so they lose more money.
In terms of the merchants, EVERYONE loses with Amazon. And don't even get me started on counterfeit merchandise flowing through the system.
Amazon is a great company to a lot of people who aren't aware of what it's like to participate in the marketplace as a vendor, but Amazon is hell-bent on getting more vendors aboard to ship merchandise at vendor expense to rent space in the Amazon fulfillment ceneter. Probably the biggest source of money for Amazon is fees from vendors. But Amazon pits all vendors against each other. Many vendors sell for less than the cost of shipping their merchandise, because of the fees to keep it in storage. It's a type of house of cards because as more people figure out just what Amazon stands for, fewer people want to ever buy anything from there. It takes time...
Which is why as a merchant I'll never use them to sell my products. Believe me i agree with you why i don't like them or agree with them from a business point of view. It my make it easier for entry lvl ppl but even they come and go.
There are also other sites like the Alibabah ones that are ten times worse then Amazon when it comes too this.
The unshotable stock. Looks like they could not find anyone to short it to propel it to new highs. No shorts no protection to the downside.