Quote:
Originally Posted by allinhi/
Stock prices espcially for a single year tell little about company performance. Amazons income from its other retail areas is huge. Amazon is multinational. These factors make your stock price model a guide for judging these firms suspect.
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I disagree with that comment.
A bad CEO o poor management directly reflects on a one year stock price. Go back and take a look on HP's, for example. You will see the impact of Mark's resignation plus the controversial decisions of the previous one. A few months maybe not, but a full year gives a good picture. Actually, is a good gauge for some companies to figure it out what to do on next quarter, what product stop producing or what not.
Apple's 1 year stock is awesome, and a direct result of good sales number on iPad and other products.
And you are right. Amazon stock shows everything there but that's what Amazon is, an online retailer. When comparing stock and company performance, there is no way to separate that.
B&N, on the other hand, is not a retailer. In fact, because B&N is smaller and basically just a bookstore, any benefit of ereader and ebook sales, if one, should be rapidly shown on a 1 year chart, at least that's my opinion.