The absurdity of Apple vs Amazon

The stock market makes me want to drink… more than usual.



  • rwitt

    Increasing growth rate was priced into Apple’s stock. When the growth slows, the price drops. In Amazon’s case, meager margins are expected for the foreseeable future, so any news confirming this expectation has relatively little effect on the stock price. There’s not much more to it than that. Investors seem to think Amazon will be profitable someday, hence the still high valuation. When that day is, who knows.

    • Gandhi

      quote: “When that day is, who knows.”

      Well, based on the current P/E of 3000+, I would guess in couple of millenia?

    • tylernol

      Amazon is almost 20 years old. They have been playing this “building out infrastructure” / new market stuff for a long time now.

  • http://twitter.com/megamosh megamosh

    Q: Why did God create stock analysts? A: In order to make weather forecasters look good.

    • http://mangochut.net/ mangochutney

      Oooh, that’s a good one.

  • dr.no
    1. Jeff Bezos is from Hedge Fund community.

    2. Wallstreet believes that Amazon will destroy its competitor using monopoly power by having low margin.

    3. Same way Wallstreet believes Android will over power Apple because it is given away free.

  • http://mangochut.net/ mangochutney

    Insanity, oh and stock manipulation.

    Also: I fairly impressed by Mr. DeWitt’s reporting in recent months; he puts out very sane and well-reasoned articles.