Skip to main content

Amazon: long term AMZN chart and thoughts

Quick note on our nation's leading e-retailer, Amazon.com (scroll down for long term price chart). 

As I mentioned on Twitter tonight, I've never really followed Amazon or its stock closely. To me, the ongoing debate between bulls and bears re: Amazon's profits (or lack thereof) is just an interesting case study of the market weighing disparate views. 

So far, the market's "weighing machine" has largely been pointing towards the bullish side of the scale, at least where AMZN is concerned.

Here's the New York Times on Amazon's third quarter earnings report. 

"Amazon’s third quarter followed a familiar script: it sold vast quantities of things, lost money while doing so, and investors were delighted.
Revenue was $17.09 billion, up 24 percent and about $400 million more than predicted, the company said Thursday. But all that volume could not yield a profit. Amazon lost 9 cents a share, or $41 million, just like as had anticipated.
Investors broke out the champagne. In after-hours trading, the stock was up $29, or 8 percent, to $361. The stock is up nearly tenfold since 2008. Amazon is the subject of an increasingly bitter debate about whether all of its investing in warehouses and new ventures will ever lead to solid profits.
The bulls think the company is building an unassailable position as the most important retailer in the country. The bears point to things like this week’s increase in the free shipping minimum to $35 from $25 as signs that Amazon must one day focus on the bottom line. For the moment, the bulls are very much in ascendance...".
Now as far as Amazon goes, all I know is: 

a) It's the Sears Roebuck of our generation
 
Sears Roebuck & Co. catalog 1908

b) Jeff Bezos (widely hailed as one of the century's great business leaders).

Jeff Bezos brand reputation quote

c) I like ordering from Amazon. Great selection of goods, visibility on prices. 

Jeff Bezos companies lower prices quote


d) AWS, Amazon's growing web hosting business, is endorsed by the CIA

Jeff Bezos Amazon AWS CIA

And of course, there's the chart. Here's the long-term monthly chart of AMZN, from Amazon's IPO in 1997 to present, late 2013 (click to enlarge). 

Amazon AMZN stock price chart

As you'll note from the chart above, there were only 2 really good times to be bearish on AMZN. The first was after the dot-com bubble peaked in March 2000. The second was a brief period near the height of the 2008 financial panic, when AMZN dropped from the mid-$80s to around $35. 

It didn't take long for AMZN to recover, and by late 2009 it was back above $120 a share, surpassing its old 2000 highs. Since then, it's been a pretty consistent grind higher to $332 a share. That's a 500% move from February 2009, just before this latest bull market began. 

So, to sum up, I have no dog in this fight (no current position in the stock). I'm neither a raging bull or bear on Amazon, but I think that putting this post together has helped me see things a bit more clearly. You can bet that I won't be shorting AMZN anytime soon, and I will definitely keep an eye on its relative strength (as a long candidate) in any future market corrections. 

Photo credits: via Google Images and The Atlantic.

Related posts:

1. Jeff Bezos chats with Charlie Rose (2010 interview)

2. Amazon CEO Jeff Bezos with Charlie Rose: 2012 interview

3. Amazon and the "profitless business model" fallacy.

Subscribe to Finance Trends by email or get new posts via RSS. You can follow our real-time updates on Twitter.  

Popular posts from this blog

The Dot-Com Bubble in 1 Chart: InfoSpace

With all the recent talk of a new bubble in the making, thanks in part to the Yellen Fed's continued easy money stance, I thought it'd be instructive to revisit our previous stock market bubble - in one quick chart.

So here's what a real stock market bubble looks like. 

Here's what a bubble *really* looks like. InfoSpace in 1999-2001. $QQQ$BCORpic.twitter.com/xjsMk433H7
— David Shvartsman (@FinanceTrends) February 24, 2015
For those of you who are a little too young to recall it, this is a chart of InfoSpace at the height of the Nasdaq dot-com bubble in 1999-2001. This fallen angel soared to fantastic heights only to plummet back down to earth as the bubble, and InfoSpace's shady business plan, turned to rubble.

As detailed in our post, "Round trip stocks: Momentum booms and busts", InfoSpace rocketed from under $100 a share to over $1,300 a share in less than six months. 

In a pattern common to many parabolic shooting stars, the stock soon peaked and began a…

William O'Neil Interview: How to Buy Winning Stocks

Investor's Business Daily founder and veteran stock trader, William O'Neil shared his trading methods and insights on buying winning stocks in an in-depth IBD radio interview.

Here are some highlights from William O'Neil's interview withIBD:

William O'Neil's interest in the stock market began when he started working as a young adult. 

"I say many times that I didn't get that much out of college. I didn't have much interest in the stock market until I graduated from college. When I got married, I had to look out into the future and get more serious. The investment world had some appeal and that's when I started studying it. I became a stock broker after I got out of the Air Force."
He moved to Los Angeles and started work in a stock broker's office with twenty other guys. When their phone leads from ads didn't pan out, O'Neil would take the leads and drive down to visit the prospective customers in person.

"I'd get in the c…

New! Finance Trends now at FinanceTrendsLetter.com

Update for our readers: Finance Trends has a new URL! 

Please bookmark our new web address at Financetrendsletter.com

Readers sticking with RSS updates should point your feed readers to our new Finance Trends feedburner.  



Thank you to all of our loyal readers who have been with us since the early days. Exciting stuff to come in the weeks ahead!

As a quick reminder, you can subscribe to our free email list to receive the Finance Trends Newsletter. You'll receive email updates about once every 4-8 weeks (about 2-3 times per quarter). 

Stay up to date with our real-time insights and updates on Twitter.