Amazon…Thing of Beauty

  • Posted by
  • on February 2nd, 2009

You can’t give enough credit to the people of Amazon for just delivering the shizzle year after depressing year.

I was a small net seller last week, but I was buying in the low $40′s and after their earnings call at $54 last week.

Basically the stock is off just 25 percent from it’s highs. There was a spike to $90 on some yutz Citibank analyst call last year saying the Kindle cured blindness, but pretty much the stock peaked out in the low $80′s.

With Google and Apple down over 50 percent, Amazon is obviosuly perceived as the best web/technology company in America if not the world.

Does it deserve it? Can it retain the lead?

I believe so. Despite the Kindle flaws…it’s a slow locomotive that will gather steam. Better it’s not loved off the bat to keep the competition away. When they get version 2 or 3 right, it’s death to the competition. Either way though, Amazon is selling the razor blades and the hardware can go anywhere.

I don’t get all the cloud talk, but I know we are using it. If there is a BlackSwan ‘cloud’ issue ahead, well you go trade that event. I will just put my faith in the cloudspeak. I love my hosting bills as well in the meantime.

Bezo’s looks pretty healthy.

With the VIX at 60 and PE ratios shrinking by insane percentages, the holders of Amazon could give a rat’s ass. Amazon will have to BLOW it now to lose it’s luster.

Customer service is second to none.

You can hedge the whole consumer slowdown by shorting retail box stores like I have been doing.

There is no reason to chase the stock but Amazon is going to lead technology for the forseeable future so you can own the selloffs.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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