A good company and a good stock are not necessarily the same thing. $20grand for a Ford Focus might be a great deal. $100 grand for the same car most assuredly would not. Amazon's stock price is way out of proportion to the money it earns. You HAVE to believe in Amazon having shocking amount of growth to justify their price. It could well be that they have run out of "greater fools" to sell the next price bump.
Amazon the company can do just fine....but the investors are likely in for a world of hurt.
|