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Amazon Second Company to Reach the 1 Trillion Dollars Market Valuation


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Just now, frenchy said:

at least the drip made his own way in life. :lol: 

I love drippy....anyone so self unaware and generally retarded at that level is alright in my book. Brags about getting to have sex WITH HIS FUCKING WIFE and refers to it as "sport fucking" lolz

I love it!!!!11

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12 minutes ago, f7ben said:

I love drippy....anyone so self unaware and generally retarded at that level is alright in my book. Brags about getting to have sex WITH HIS FUCKING WIFE and refers to it as "sport fucking" lolz

I love it!!!!11

Dripper is "Shit tickets"...right?

:lol:

 

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7 hours ago, Highmark said:

Amazon has been very very good to me.    Amazon was easy to read.   Earlier this year I always kept some cash available to buy it when it dropped a percent or two.   Jump in and let that ride until it got back to even or slightly above then sell.   Hitting those correctly added nicely to its overall gains.   Today might be one of those days.  

 

gatsby.1497548146.gif

 

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5 hours ago, frenchy said:

MC, wrong again.....

Markets

Amazon as a Value Stock? Believe It

It looks expensive, but the company’s disdain for Wall Street has made it cheap.

By conventional measures of stock prices, Amazon.com Inc. looks very expensive. It’s actually surprisingly cheap.

Twenty-one years after it went public, a share of Amazon stock costs 70 times more than the company’s estimated per-share future earnings. That means investors are willing to pay much more for each dollar of Amazon’s earnings than for shares of Microsoft, Apple, Facebook, Alphabet or Alibaba. The everything store’s price-to-earnings ratio is four times higher than that of the S&P 500 index.

Yet even at this valuation, all but one of 52 analysts surveyed by Bloomberg recommend owning the stock, and 48 of them say that investors should buy it and keep it, according to data compiled by Bloomberg.

Which makes Amazon something few analysts ever believed it could become: a value stock, fetching a modest price considering the company’s opportunities for growth.

To understand why Amazon remains a bargain means acknowledging the commitment to create efficiency for consumers by spending more money on more works in progress than anyone. Amazon’s market capitalization just became greater than the combined worth of the leading companies in six different industries where it is a competitor.

The prospectus from the initial sale of Amazon stock on May 14, 1997 said the online bookseller might never make money, and that its operating costs were greater than rivals Barnes & Noble Inc. and Borders Group Inc. Within a month, Amazon was down 19 percent. The company's gross margin (revenue after the cost of goods sold) of 22 cents on the dollar was dwarfed by Barnes & Noble’s 36 cents and less than Borders’ 27 cents. While first-quarter sales surged to $16 million from $875,000 a year earlier, losses widened to $3 million from $331,000.

“I just don’t see how they’re going to have the muscle to pull this off,” McCabe Capital Partners’ Steve Zenker told Bloomberg News in May 1997. He was expressing the widespread opinion that Amazon was incapable of trading at a discount relative to dividends, earnings and sales, and that the fundamentals of value investing such as a high dividend yield and low price-to-earnings ratio were impossible for the Seattle internet startup.

Amazon Chief Executive Jeff Bezos famously took the opposite view. “It just doesn’t make sense to focus on the day-to-day stock price,” he told Bloomberg a month after the initial public offering. He said he was “obsessed” with customers because “it’s easy in a competitive situation to get totally focused on your competition and lose sight of your bread and butter.”

The strategy of relentlessly innovating by reducing customer costs and increasing convenience at the expense of quarterly earnings helps explain why Amazon shares beat the world and gained 498 percent during the past five years as the top performer among the 15 companies in the Bloomberg Intelligence Global E-Commerce Index. The also-ran S&P Consumer Discretionary index and S&P 500 advanced 107 percent and 87 percent. It took less than a year for Amazon’s market capitalization of less than $500 million to exceed the $2.6 billion of No. 1 Barnes & Noble. By 2015, Amazon was worth more than $220 billion, exceeding the value of Walmart Inc., even though the world’s largest retailer had $505 billion in total revenues, more than double Amazon’s $193 billion at that point.

In the business of leasing information-technology gear, by contrast, Amazon didn’t need to play catch-up. “Amazon had over a five-year head start over its rivals in cloud computing, where enterprises rent infrastructure instead of buying it,” said Anurag Rana, a senior analyst at Bloomberg Intelligence.

Despite strong growth over the past decade, the cloud computing business represents less than 10 percent of total information-technology spending, which shows that the cloud has a lot more room to grow in the coming years. This shift in spending is likely to disadvantage legacy tech companies like International Business Machines Corp. and Oracle Corp.

Amazon also is competing in video streaming with Netflix Inc., whose market capitalization still is about a fifth of Amazon’s after growing 10 times during the past five years. President Donald Trump’s attacks on Amazon may hasten the company’s plans to become an entrenched logistics leader, having already overtaken United Parcel Service in 2009. Few were surprised when Amazon said on June 28 that it was buying PillPack, a nationwide drug network competing with traditional pharmacy chains like including Walgreens Boots Alliance Inc. and CVS Health Corp.

Amazon is now worth about as much as the combined $831 billion market capitalization of six competitors, Barnes & Noble, Walmart, IBM, Oracle, Netflix and UPS. And money managers are showing that they expect this kind of relative strength to persist: 730 non-index mutual funds in the U.S. invested $103 billion in Amazon, easily surpassing the $73 billion invested by 1,171 non-index funds in the six rivals combined, according to data compiled by Bloomberg.

And Amazon invests huge sums on technology and content spending for future product development, $25 billion during the past 12 months. That dwarfs the $18 billion spent by another big investor in research and development, Samsung Electronics Co. The R&D expenses of more than 1,000 global retailers, excluding Amazon, was $9 billion for the same period.

“Two facts make Amazon unique,” said Jitendra Waral, a senior analyst at Bloomberg Intelligence. “The DNA of the company is to try to cut the number of steps to zero for a consumer to buy goods from Amazon. Amazon wins by constantly changing behavior through innovation. The company spends eight to 10 years to research new products so it always is thinking much ahead. Amazon’s end market is 16 percent of global gross domestic product, excluding China. To put this in context, if Amazon’s end market was the Empire State Building, it still is on the third floor. This gap creates plenty of return-on-investment opportunities for their long-term investments.”

That’s pretty much the definition of a value stock.

https://www.bloomberg.com/view/articles/2018-07-09/amazon-stock-is-actually-a-value-play

Still no dividend.

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8 hours ago, frenchy said:

So what? 

I stated Amazon never posted a dividend. You replied with a long cut and paste about their profits but no dividend proof.

my statement was correct.

I stand buy my stock buys. Buy stocks that pay dividends. 

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14 hours ago, Mainecat said:

Still no dividend.

not everyone is looking for the tax consequences of a dividend stock.  

 

Berkshire hathaway pays no dividend and the guys the fucking oracle of investing.  

 

Berkshire Hathaway (BRK-A, BRK-B) does not pay a dividend because its chairman and CEO, Warren Buffett, believes it is more beneficial to allocate the company's earnings in other ways. In particular, Buffett prefers to reinvest profits in things that allow his company to improve its efficiency, expand its reach, create new products and services as well as improve existing ones, and further separate itself from competitors. Buffett, like many business leaders, feels that investing back into his business provides more long-term value to shareholders than paying them directly because the company's financial success rewards shareholders with higher stock values. Additionally, Berkshire Hathaway maintains an aggressive stock buyback policy that puts cash directly into shareholders' pockets.

Despite the company having billions of dollars of cash on hand, the prospect of a Berkshire Hathaway dividend is dim as long as Buffett is in charge. The company has paid only one dividend during his reign, in 1967, and Buffett later joked he must have been in the bathroom when the decision was made. Nevertheless, statistics give credence to Buffett's stance that using profits to buttress the company's financial position results in greater wealth for shareholders than paying dividends. Berkshire Hathaway's stock price increased by almost 700,000% between 1964 and 2014 and specifically experienced a recent uptick in the months of November and December 2016. Someone who invested $1,000 in the company's stock in 1980 is a millionaire in 201

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18 hours ago, frenchy said:

yep. He reminds me of 'Pal' from Uncle Buck. :bc: 

giphy.gif

Love that scene in Uncle Buck.   Cracks me up every time.  

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On 9/5/2018 at 7:22 AM, Mainecat said:

At least Apple manufactures.

One of your dumbest statements to date.

Your statement about only buying dividend stocks is almost equally is bad.  With bottom line profits, companies can either a, reinvest profits, b, buy back shares, or c, pay dividends.  When a dividend is paid out, the stock price drops by the value of the dividend.  As long as you have a long-term buy and hold strategy, there is no difference in the two.  Even taxes are handled the same.  Dividend or share buybacks make no difference to the valuation of a company.

Typically, value companies pay dividends, have little debt, slower growth, and have a long history of solid financial performance.

 

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Another MC “Golden Rule” for those of us that are not so heavily “brained”:

”Only buy stocks that pay dividends”.

:lmao:

Astonishing to me how some people can survive with such severe brain injuries.  I miss that show, “That’s Incredible!”

 

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9 minutes ago, teamgreen02 said:

One of your dumbest statements to date.

Your statement about only buying dividend stocks is almost equally is bad.  With bottom line profits, companies can either a, reinvest profits, b, buy back shares, or c, pay dividends.  When a dividend is paid out, the stock price drops by the value of the dividend.  As long as you have a long-term buy and hold strategy, there is no difference in the two.  Even taxes are handled the same.  Dividend or share buybacks make no difference to the valuation of a company.

Typically, value companies pay dividends, have little debt, slower growth, and have a long history of solid financial performance.

 

Fucking savage....MC just getting his ass rag holed

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11 minutes ago, f7ben said:

Fucking savage....MC just getting his ass rag holed

It’s shocking. The man is seriously a complete imbecile.  Complete. I’m not just saying that to be mean.  Seriously, he’s eggplant parm stupid.  

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10 minutes ago, Zambroski said:

It’s shocking. The man is seriously a complete imbecile.  Complete. I’m not just saying that to be mean.  Seriously, he’s eggplant parm stupid.  

Yup....zero fundamental understanding of anything

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3 hours ago, Mainecat said:

I stated Amazon never posted a dividend. You replied with a long cut and paste about their profits but no dividend proof.

my statement was correct.

I stand buy my stock buys. Buy stocks that pay dividends. 

 

22 hours ago, Mainecat said:

Amazon has never even paid a dividend. Their valuation is so fuckin overblown. 

 

you also said their valuation is overblown whereas experts in the market vehemently disagree. Who to believe.....

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