Amazon.con: How Much Longer Can AMZN Go On Losing Money?

“We lose money on every sale – but we make up for it in volume” –  Proposed new Wall Street slogan for Amazon’s stock

I did a podcast conversation with Kerry Lutz of Financial Survival Network.  We discussed last Friday’s fraudulent Government jobs report, the highly misleading housing market data published by the various housing market promotional organizations like the National Association of Realtors and the absurdity of Amazon.com’s stock valuation.  You can listen to our discussion using this link below or from Financial Survival Network:

(You download the MP3 module by right-clicking on the bar and clicking on “save as”)

AMZN is probably one of the most overvalued stocks in the stock market right now.  It lost money for the full year in 2014 and is forecasting the likelihood of a massive operating cash flow loss for Q1 2015.  This stock was $40 before QE started in late 2008 and, when reality/gravity reasserts its control over the stock market, I believe this stock will ultimately end up well below $40.  The company’s profitability has deteriorated significantly since 2008 and I prove this in my report.  Not only that, it has recently added the issuance of $9 billion in debt to the mix.   You access my report here:  AMAZON DOT CON.  I also have some specific ideas for using put and call options to help manage market risk or if are not comfortable shorting stocks outright.

bezos_laughing

 

One thought on “Amazon.con: How Much Longer Can AMZN Go On Losing Money?

  1. Amazon’s business model reminds me of an old joke-
    A guy is walking to a hardware store and he sees what looks like a farmer selling hammers from the back of his pick up truck.
    “The hammers are ten dollars a piece,”says the farmer, ” they’re real good quality, I should know since I buy them from the hardware store for twenty dollars each.”
    “Wait a minute!” says the guy “You buy them for twenty and you well them for ten? You can’t make any money that way, you’re losing money on every sale. ”
    The farmer shrugs “Maybe so, but its a lot easier than farming, and I’m not losing half as much money than I would be by raising crops! “

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