
Amazon Is the New Tech Crash - Nokinside
https://dailyreckoning.com/amazon-new-tech-crash/
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rubyfan
Second version of roughly the same story today. When flying sky high it’s easy
to say bubble or correction coming soon.

I see a better story. Pent up demand for growth investment. Big companies have
largely been uninteresting over the last several years, ever increasing
dividends and stock buybacks tell us they just don’t know what to do with
excess revenues. This seems to be starting to unlock as big companies try to
figure out the next big thing. Meanwhile investors are showing their support
for the Amazon’s of the world over the Walmart’s... its why Tesla is valued
over Ford. Investors believe the management at Amazon will utilize capital to
fuel growth better than other available options.

Perhaps there is a bubble or correction coming but if so, it’s just starting
to form.

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Nokinside
I think Amazon the company is going to be fine. Bezos will adjust his business
model when the growth slows down.

What everybody can agree with is that AMZN stock price is massively
overvalued.

Amazon is on low margin retail business. Amazons market cap is 4751B. Assuming
10% ROI and 3% profit margin, Amazon must make $16 trillion in revenue some
time in the future.

US retail sales are $5 trillion.

Total retail sales across the globe are $22 trillion.

Amazon runs out of markets before current stock price can be justified.

