I use Amazon ( AMZN 261.80 [-1.16] ) all the time so of course I would think about it as a potential investment. I am sure many of you feel the same way. You may not decide to buy it now, but back after the dotcom bubble burst you could have gotten it for less than $10. Perhaps Amazon was not as much of a presence in our lives back then, but I still used it a lot.
I like how Amazon is always looking into new business opportunities. It made the move into tablets at the right time, and in my opinion it is moving into streaming at the right time too. It is not often the first into a new market, but after it surveys the landscape it jumps in and provides something people actually use. That is a great way to do business. However, the market has been a bit overzealous in judging Amazon’s growth. Normally, I would fundamental analyze a company like Amazon till my fingers got tired, but it is just so expensive both absolutely and relatively. Instead I will focus on some valuation metrics, and short term trade strategy. The strategy will be like a prayer that all of us can one day enjoy a cheaper entry, except hopefully it pays.
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