Amazon.com (AMZN) is a tough stock to read. The company has lowered profit estimates in each of the last four quarters, yet the stock is up in the past year.
One Year Chart
This one-year chart is littered with red. I sold AMZN in August 2010 at $126 and never would have imagined it would be this high considering what profits have done.
Amazon is investing in its infrastructure. That’s hurting profits now but should mean even better results down the road. The trouble with that is I can’t get a read on how much profits will be, or when this will happen.
Fair Value
This is a tough stock to put a Fair Value on. If we knew what AMZN will make in say 2015 I could get a better handle on a valuation. But we don’t.
Sharek’s Take
This isn’t a stock for me. There’s so much going on with warehouse buildouts, cloud computer service offerings, etc. AMZN needs extensive research from an analyst to get a read on. I’ll stay away for now.
View AMZN’s Earnings Table here.
View AMZN’s Ten Year Chart here.
