Amazon continues to thrill momentum investors. I am one of them.
I did this video with Paul at CNN Money and it has the gist of the thesis.
You can’t overthink momentum and Amazon is the poster child of investors overthinking.
Amazon CANNOT be valued. Not in a bad way either. If you are short, consider for a moment the possibility that Amazon is where WalMart $WMT was in 1991, before it’s stock got going.
Two things will stop the $AMZN train. One is a deceleration in one of it’s expanding tentacles in a big enough way to overshadow the three revenue tentacles that appear quarterly. I doubt this happens in the next 3 years.
The other is a crisis of confidence. Maybe one starts tomorrow, but that’s a terrible thesis for standing in the way of the goodness.
PS – Special thanks to Paul Lamonica for not barfing at the sight of my belly at 2:45 in the video and my new personal sponsor Dunkin Donuts!
Love Amazon, bought it at $58 in October 2008, but I am worried about sale tax in CA and other states. I think Amazon will prevail because most of us are not supporters of state government and their wasteful spending practices at this point, but sooner or later Amazon is going to have to address this issue.