The run-up in AMZN has been stunning to say the least. It reminds of Commerce One (CMRC) at the peak of the tech/internet bubble. CMRC ran from $10 to $600 in vertical fashion. The only difference between CMRC and AMZN is that AMZN has revenues. Both companies burn cash like a Weimar Republic furnace.
The move last week was precipitated by comments made Stanley Druckenmiller at a CNBC investment symposium. Druckenmiller was comparing IBM to AMZN. Unfortunately, if you have bothered to study AMZN’s financials, you know that Druckenmiller was blowing smoke out of his ass with regard to his assertions about AMZN. Druckenmiller’s comments begin at about the 14:30 mark: Druckenmiller’s Follies
Even the best and the brightest make mistakes. I made a lot of money for Bankers Trust in the mid-1990’s take the other side of one of Carl Icahn’s mistakes in the junk bond market (Stratosphere Casino bonds). When AMZN’s bubble pops, the stock quickly deflate and likely end up where it was when the Fed started its QE, which is under $50.
I go into AMZN’s 3rd quarter results and show why the press release and Wall Street over the Company’s Q3 results are nothing but hot air injected into this over-inflated Ponzi scheme business model. You can access this report here – I will be raising the price again when I update it to reflect AMZN’s 4th quarter and full year: AMAZON dot CON
If you have already purchased the report, please contact me and I will email you the Update PDF.