It only takes a few moments to share an article, but the person on the other end who reads it might have his life changed forever.

Wednesday, February 01, 2017

A Warning For Amazon Longs Before Earnings

Amazon isn't really generating sufficient "real cash" and could run into liquidity troubles if top line growth stagnates.
The company is not generating sufficient value for its shareholders.
Amazon shares are priced for perfection and are overvalued.
The stellar growth of Amazon's (NASDAQ:AMZN) top and bottom line in recent quarters, backed by the unprecedented success of its cloud computing division, has not convinced everyone that the company is infallible. Genuine concerns regarding the "quality" of Amazon's cash flow and earnings have been raised by analysts, many of whom also incessantly criticize Bezos' firm for not being able to convert revenue into profit. In this article, I reexamine some of these criticisms, while employing other standard tools to assess Amazon's profitability. In addition, I'll also attempt to arrive at a fair value for Amazon stock.

No comments:

Post a Comment