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Talk to me about Amazon stock's future

Posted on 5/11/18 at 2:31 pm
Posted by Chad504boy
4 posts
Member since Feb 2005
166169 posts
Posted on 5/11/18 at 2:31 pm


how comfortable would you be buying in at this high? the past 3 years is just ridiculous, the cnn forecast has a floor that's still a 6% gains.



What some of you more professional money talker's thoughts on amazon for next couple years?
Posted by jsk020
Nola
Member since Jan 2013
1697 posts
Posted on 5/11/18 at 2:33 pm to
i mean i use amazon for like everything....and so does everyone i know
Posted by zell_miller
Athens
Member since Dec 2014
81 posts
Posted on 5/11/18 at 3:12 pm to
Trust in Jeff Bezos. Amazon will surpass a trillion dollar valuation once they release zero click ordering. They will start sending you items before you even ask for it in packages along with a return box. I think they are an unstoppable force unless regulation or name-calling from the White House change the narrative
Posted by castorinho
13623 posts
Member since Nov 2010
82012 posts
Posted on 5/11/18 at 4:20 pm to
Waited for a dip that never came and got in in the high 1200s.
You could wait for a slightly cheaper price, but might as well get in now. Should be fine with a long term plan
Posted by NFLU
New Orleans, LA
Member since Aug 2014
5773 posts
Posted on 5/11/18 at 5:08 pm to
quote:

They will start sending you items before you even ask for it in packages along with a return box.


I don't believe you.
Posted by buckeye_vol
Member since Jul 2014
35236 posts
Posted on 5/12/18 at 10:08 am to
quote:

You could wait for a slightly cheaper price, but might as well get in now.
I’m thinking about starting a thread about the platform, but M1 Finance dropped all of their fees for their products (IRAs, stocks, indexes, etc), and seem to be taking the Robinhood route to generate income.

It has a lot cook and useful services (customized ETF’s, customized and customizable “pies” to put into a portfolio), but one of the best features, in my opinion, is you can buy fractional shares of stocks and funds.

So if one can’t afford $1600 to buy one share of Amazon, but has $160 instead (or even $1.60) then you can buy that fraction of a share with the money one can afford to invest.
Posted by tigerpawl
Can't get there from here.
Member since Dec 2003
22247 posts
Posted on 5/12/18 at 11:59 am to
This just in: "The price of the annual Prime membership increased from $99 to $119 on May 11, 2018. The new price will apply to your renewals starting April 4, 2019."
Posted by oklahogjr
Gold Membership
Member since Jan 2010
36761 posts
Posted on 5/12/18 at 2:01 pm to
quote:


It has a lot cook and useful services (customized ETF’s, customized and customizable “pies” to put into a portfolio), but one of the best features, in my opinion, is you can buy fractional shares of stocks and funds.

So if one can’t afford $1600 to buy one share of Amazon, but has $160 instead (or even $1.60) then you can buy that fraction of a share with the money one can afford to invest.


not clear on how thst works but typically if your buying fractions doesn't someone else own the stock on paper?
Posted by buckeye_vol
Member since Jul 2014
35236 posts
Posted on 5/12/18 at 2:46 pm to
quote:

not clear on how thst works but typically if your buying fractions doesn't someone else own the stock on paper?
No. You actually own the share, and they’re eligible for dividends. I’m still not sure how to the brokerages create them since dividends, splits, ETF trading, etc. already creates fractional shares. So do they buy those or do they buy a full share then create it themselves since enough people probably make it a short term holding until the full share is eventually sold? The robo advisors have really made it popular so I wonder if it’s easier due to technology.
Posted by mrgreenpants
paisaland
Member since Mar 2018
1421 posts
Posted on 5/13/18 at 5:58 am to
while i prefer highly profitable dividend yielding stocks...
amzn is still the best in industry...and is a current "strong buy" on zacks.

Last Earnings Report Quarter Ending 03/2018 Report Date Apr 26, 2018...
quote:

Sales Surprise 1.73% EPS Surprise 168.03% Quarterly EPS 3.27 Annual EPS (TTM) 6.35 Amazon delivered first-quarter 2018 earnings of $3.27 per share, crushing the Zacks Consensus Estimate by $2.05 (168%) and also soared 121% year over year. Net Sales of $51.04 billion comfortably surpassed the Zacks Consensus Estimate of $50.17 billion. The figure surged almost 43% year over year and beat management’s guided range of $47.75-$50.75 billion. After adjusting for foreign exchange, revenues increased 36% year over year. North America revenues (60.2% of sales) jumped 46.4% from the year-ago quarter to $30.73 billion. International revenues (29.1% of sales) increased 34.5% to almost $14.88 billion.


Reasons To Buy:..
quote:

Amazon.com is one of the largest e-commerce companies in the world. Although the primary product line was books at first, the company rapidly diversified into a host of other product categories. The current focus is on building video content, primarily for Prime subscribers because the growth prospects in that market are considerable. Product selection, a superior user experience, bargains and customer feedback have helped the company build a strong position for itself in the fast-growing ecommerce market. The growth of the e-commerce industry with consumers increasingly buying things online has proved to be favorable for the company. While the big brands may build their own online stores over time, a platform like Amazon allows discovery by new buyers. Smaller players are far more dependent on Amazon as they don’t have the resources that Amazon has to invest in technology and fulfilment to generate the kind of reach that Amazon can deliver. Moreover, considering opportunities in international markets, the company’s high growth rates are likely to be sustained over the next few years.

quote:

Amazon’s strategy of gradually merging online and offline retail looks promising. It will not only reshape the retail landscape but also help it fend off competition, if it could manage a first mover advantage. It has added online and offline features to its bookstores and is going the same way with innovations such as drive-in-grocery delivery service (AmazonFresh Pickup - order groceries online and collect them from a store nearby) and “cashier-less” stores (Amazon Go – the company’s first brick-and mortar grocery store). We expect online retail sales to decelerate while the overall retail market still holds a lot of potential. So, moves like these will help Amazon tap a large number of customers who prefer to shop offline, while not doing away with the online business. Amazon is the leading provider of cloud infrastructure as a service to enterprise customers.

The Amazon Web Services (AWS) business as it is called generated revenues of $4.6 billion in the third quarter, growing at over 40% year over year in each of the last five quarters. Even more encouraging is the fact that AWS generates much stronger margins than the traditional retail business, which should remain a positive for the company’s profitability as it continues to grow in the mix. AWS is gaining momentum with customers including Adobe, GE Oil & Gas, Kellogg’s, Airbnb, hilips, Pinterest, Spotify, Tata Motors, Unilever, McDonalds, BMW, British Gas, Capital One, US Department of State and USDA Food and Nutrition Service.


Posted by CivilTiger83
Member since Dec 2017
2525 posts
Posted on 5/13/18 at 8:45 pm to
No idea, but one big risk as they continue to grow is antitrust policy. Could they become like Ma Bell?
Posted by Novae
Member since Aug 2005
97 posts
Posted on 5/14/18 at 8:27 am to
I think about that with Google all the time. What were the stock implications when Bell was ordered to break up? How can one profit from that situation? I think it'll happen with Google in Europe first, then eventually we'll be forced to do it in the States as well.
Posted by zell_miller
Athens
Member since Dec 2014
81 posts
Posted on 5/14/18 at 8:46 am to
Zero-click ordering, just wait for it
Posted by lynxcat
Member since Jan 2008
24135 posts
Posted on 5/14/18 at 9:18 am to
Consumers will have to opt in to that and it’s going to really piss a lot off them stuff shows up that they don’t need.

eCommerce still follows the basic rules of offer, consideration, and acceptance in contract law with zero click breaking part of that chain.
Posted by brian_wilson
Member since Oct 2016
3581 posts
Posted on 5/14/18 at 10:25 am to
amazon's business is really awesome, and I think they will dominate a whole variety of sectors.

their PE ratio is still ridiculous though. So you really are banking on their growth, or them operationalizing and cutting costs.

i have a friend that works there at a sr position. He started 3 years ago, and his stock options are enough to retire. I told him to cash out and do it, but he won't.
Posted by Black n Gold
Member since Feb 2009
15408 posts
Posted on 5/14/18 at 10:57 am to
I'm buying some next time Trump bring the price down.
Posted by leoj
Member since Nov 2010
3106 posts
Posted on 5/14/18 at 11:11 am to
Pe is ridiculous, but the stock price is more closely correlated to the fcf I believe.
Posted by brian_wilson
Member since Oct 2016
3581 posts
Posted on 5/14/18 at 11:16 am to
amazon is tricky to value, as they are really big but are priced like a smaller, faster growing company. They are making huge investments in a variety of businesses.

the price to cash flow ratio is still really high.
Posted by raw dog
Baton Rouge
Member since Nov 2011
483 posts
Posted on 5/14/18 at 12:55 pm to
quote:

i have a friend that works there at a sr position. He started 3 years ago, and his stock options are enough to retire. I told him to cash out and do it, but he won't.


???

Stock has wildly outperformed, but it's up 3.5-4.0x, not 300x.
Posted by castorinho
13623 posts
Member since Nov 2010
82012 posts
Posted on 5/15/18 at 1:51 pm to
I see it's red today, what did Trump do now?
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