The funny thing for me is that everyone has always said that Amazon's share price is justified because eventually "they'll turn on the profit tap" and up their margins once the market is captive.
Yet, how do you tell when Amazon are about to do that? I would've thought they'd do it when revenue growth starts slowing. ie. When the strategy of spending money to make money starts being less effective, as there is steadily harder gains to be got from it. That's when I'd turn on the tap.
So just as Amazon are about to do this (potentially anyway), that's when people sell? I'd say this is by far the best time to buy...
Yet, how do you tell when Amazon are about to do that? I would've thought they'd do it when revenue growth starts slowing. ie. When the strategy of spending money to make money starts being less effective, as there is steadily harder gains to be got from it. That's when I'd turn on the tap.
So just as Amazon are about to do this (potentially anyway), that's when people sell? I'd say this is by far the best time to buy...