I have closely followed Amazon.com since the late 1990’s. Many of you can probably remember that Henry Blodget made his name as a stock analyst with his bold predictions about the upward direction of AMZN’s stock. Granted, this stock defies all laws of fundamental stock analysis and gravity. I’ve come to the conclusion that Jeff Bezos has got to be the greatest snake-oil salesman in history. He’s known for saying “entrepreneurs must be willing to be misunderstood for long periods of time.”
When the annals of history are written on AMZN, it will be known as “the company never made money but it’s stock remained insanely overvalued for long periods of time.”
I have written a very detailed analysis of AMZN’s financial statements. I show why AMZN’s business model generates impressive revenue growth but fails to produce any meaningful amount of cash flow or net income. I show how AMZN is really nothing but a Ponzi scheme dressed in drag.
You can access this report here: AMAZON DOT CON.
Shorting any stock right now is a difficult proposition because the $4 trillion printed by the Fed is propping up the stock market. But once the stock market rolls over, stocks like AMZN that are insanely overvalued relative to their ability to generate profits are going to crash hard. In my report I have section that discusses using options to help you set up for the time when AMZN takes its next cliff-dive.