Back in August 2014 I wrote about all the (from my perspective) stupid people buying Amazon stock after the company bought Twitch for close to a billion dollars. At that time the share price was in the low to mid $300’s.
But now AMZN proudly trades at a new 52 week high of $389.37 and there seems like there is no stopping it. No matter what bonehead products they put out and fail (Fire Phone, Fire TV Stick, diapers), investors continue to buy into Bezos’ smoke and mirrors. The company has proven quarter after quarter, year after year, that it can’t make money and yet investors just don’t seem to care.
Now we get news that Jay Carney has been hired by the company and he will, presumably, lend his spinning skills to further confuse investors into thinking Amazon really is on its way to dominating the world. If you can’t tell already, I have an aversion to Jay Carney who’s job for years was to lie for Obama. Now, he gets to try to pull the wool over the investment world’s eyes.
No company that is concerned about its reputation would ever hire a person like Carney. But Bezos is an over the top liberal who probably buys into everything the Democrats put forth and so Carney might even have been his personal pick. But seriously, if Amazon really was doing well and making money, they wouldn’t need to hire a snake oil salesman to make it look like they are. I think some bleak times might be ahead for Amazon and they know it. They need a real pro who knows how to lie and spin the truth to make things better than they really are and this is what this hire is all about.
Amazon’s forward P/E is close to 900 and it really is silly that investors have had so much faith for so long. I keep waiting for the stock to drop and even when it does, somehow investors find an excuse to bid it back up. But maybe this time it isn’t going to be as easy for Amazon to fool investors and they are getting ready to pull out all the stops before their ship goes down.