Tuesday, October 27, 2009

AMZN -- $124 = Crazy; Stupid Price


AMZN for some reason gets away with reporting a mythical Free Cash Flow number, that treats not paying its bills (carrying huge accounts payable for inventory) as Free Cash Flow.

This, of course, is ridiculous.

No matter how you slice it, even reporting good numbers and decent growth, AMZN has something like an 80 PE.

For a retailer !

It may be the bubble pump flavor of the day; but at $124, it is way too high.

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