Boiler Room: The Official Stock Market Discussion

winb83

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because i cant see into the future :skip:
Amazon wasn't a good buy @$1900. You had to have known that. Back in early June you could have bought almost anything else and made money.

Stocks like Amazon and Google aren't for normal retail investors. Maybe if you bought both in their earlier days before the took off but both those stocks keep their share price extremely high to keep regular retail investors away. If I was gonna put $9500 in the market right now I'd wanna put it on something like Uber.

I'd be trying to get on the train before it leaves the station not when it's moving full speed ahead.
 

the cac mamba

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Amazon wasn't a good buy @$1900. You had to have known that. Back in early June you could have bought almost anything else and made money.

Stocks like Amazon and Google aren't for normal retail investors. Maybe if you bought both in their earlier days before the took off but both those stocks keep their share price extremely high to keep regular retail investors away. If I was gonna put $9500 in the market right now I'd wanna put it on something like Uber.

I'd be trying to get on the train before it leaves the station not when it's moving full speed ahead.
its projected to double in 5 years :yeshrug:
 
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Amazon wasn't a good buy @$1900. You had to have known that. Back in early June you could have bought almost anything else and made money.

Stocks like Amazon and Google aren't for normal retail investors. Maybe if you bought both in their earlier days before the took off but both those stocks keep their share price extremely high to keep regular retail investors away. If I was gonna put $9500 in the market right now I'd wanna put it on something like Uber.

I'd be trying to get on the train before it leaves the station not when it's moving full speed ahead.
What does the standalone price of a share have to do with anything? A $5 stock isn't necessarily cheaper than a $2000 stock. Amazon has been lagging because the market was assuming higher costs on single day delivery and slowing aws, not because some retail investors can't afford a $2000 share....
 

winb83

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What does the standalone price of a share have to do with anything? A $5 stock isn't necessarily cheaper than a $2000 stock. Amazon has been lagging because the market was assuming higher costs on single day delivery and slowing aws, not because some retail investors can't afford a $2000 share....
Amazon at $2000ish has a PE Ratio of damn near 90. It's a very expensive stock and not just because it has a high share price. There's a lot of growth priced into that. As a normal retail investor I don't see buying into such an expensive company with far more limited funds. Facebook has a PE ratio of 30 and even that's on the higher side, I'd rather buy them.
its projected to double in 5 years :yeshrug:
I guess we just see things differently. If I'm buying a growth stock I wanna get into it when it's a great deal. To do that you're gonna have to deal with risk. Tesla in the $170 range was a great deal and that's the kinda stuff a retail investor should be looking at.

Looking at Amazon's PE ratio that would be a no from me. Once a stock gets past the mid 30s I'd be out unless the industry average is higher. The S&P 500's PE ratio is in the mid 20s Amazon's right now is in the high 80s. That's a Netflix level PE ratio. Fidelity has the industry average at a 47.

It's like paying $100,000 for a house thinking the price will double in 5 years when the typical home price in the neighborhood is $54,000. It might double but you paid far more for the house in that neighborhood than you had to.
 
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