I wasn't planning on buying this stock this month, but the company just reported "disappointing" earnings - and the market put it on sale...
Amazon (AMZN)
Positives:
$85B market cap: roughly equal to VMware ($40B) + Target ($35B) + Netflix ($7B) + 2% of Apple (iPad and iTunes) ($5B)...plenty of upside here.
Massive revenues ($44B) and growth (44%).
Clean balance sheet ($6B cash, zero debt).
Negatives:
Expensive P/E (99 trailing, 70 forward).
Low margins (2% operating and profit).
Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.
Apple (AAPL) 14.21%
Baidu (BIDU) 9.45%
Google (GOOG) 7.54%
Southern Copper (SCCO) 7.23%
Intuitive Surgical (ISRG) 5.53%
Annaly Capital Management (NLY) 4.72%
Ace Limited (ACE) 4.48%
American Software (AMSWA) 3.67%
BP Prudhoe Bay Royalty Trust (BPT) 3.44%
American Capital Agency (AGNC) 3.21%
Apache (APA) 3.13%
Kinder Morgan Energy Partners (KMP) 2.89%
Blackstone (BX) 2.72%
Intel (INTC) 2.71%
McDonald's (MCD) 2.67%
Prospect Capital (PSEC) 2.41%
Vodafone (VOD) 2.31%
DuPont (DD) 2.27%
Hugoton Royalty Trust (HGT) 2.25%
F5 Networks (FFIV) 2.10%
BreitBurn Energy Partners (BBEP) 1.82%
The Distressed (ERTS, ESI, JSDA, LZB, MSI, PCS, RVR, WFC) 1.59%
Under Armour (UA) 1.58%
Amazon (AMZN) 1.58%
Tesla Motors (TSLA) 1.53%
Chimera Investment (CIM) 1.35%
Netflix (NFLX) 1.24%
