Amazon doesn’t actually make anything though. Kind of like Wall Street.
Check it out:
This is fascinating. I have always been fascinated by this. Let me put it this way: Apple’s stock price high occurred last fall. After the iPhone 5 hit and a number of revisions with the iPad and the iPad Mini came out, Apple’s stock price hit $705 a share.
All of the experts predicted that it was heading to a thousand, and then something happened, and the bottom fell out, and it wasn’t long before Apple was at $425 a share. For a couple of days it was under $400 a share. Now, all this time, Apple was showing massive profits. They were reporting profits that were leading the industry. But they were not the profits that the experts expected.
Their profit was smaller than what was forecast by Wall Street analysts, and then the long knives came out in the tech media, and it became every day, “Let’s kill Apple!” While Apple was reporting massive profits, 73% of all profits in the domestic smart-phone sector are Apple’s, their market share is small because they only make one phone. Well, they make three phones, but they make one phone at one price… Well, that’s not true.
They do sell the previous two models out there, and they do sell well, but they don’t have a new phone every five weeks. They don’t have 16 different models and variations of colors. They’ve got one phone. Their market share is tiny, but they own all the profit, and yet Wall Street abandoned them. There were people trying to figure out why, but at the same time Jeff Bezos’ Amazon was showing loss after loss after loss.
When Bezos and the company would do the quarterly conference calls to report earnings to Wall Street, another loss or just a smidgen of profit would be reported, and Wall Street would go nuts with excitement! The stock price for Amazon launched ever higher! As an average, ordinary… See, ever since the Federal Reserve began propping it up, Wall Street to me is a rigged game I’m not part of. That’s been my attitude.