Right. Amazon is the greatest thing since sliced bread. Like millions of others, I use it practically every day. And it was nice to see that it made a profit - thin as it was at 0.4% of sales - in the second quarter.
But the instantaneous re-rating of its market cap by $40 billion in the seconds after its earnings release had nothing to do with Amazon or the considerable entrepreneurial prowess of Jeff Bezos and his army of disrupters. It was more in the nature of financial rigor mortis - the final spasm of the robo-traders and the fast money crowd chasing one of the greatest bubbles still standing in the casino.
And, yes, Amazon’s $250 billion market cap is an out and out bubble. Notwithstanding all the “good things it brings to life” daily, it is not the present day incarnation of General Electric of the 1950s, and for one blindingly obvious reason. It has never made a profit beyond occasional quarterly chump change. And, what’s more, Bezos - arguably the most maniacal empire builder since Genghis Khan - apparently has no plan to ever make one.
You can read the rest @
http://davidstockmanscontracorner.com/the-last-bubble-standing-amazons-same-day-trip-through-the-casino/
I like Amazon, but Stockman is correct - Bezos is building an empire which, like its predecessor Walmart, is destroying mom-and-pop brick-and-mortar stores in his lust for wealth.
No comments:
Post a Comment