I still believe AMZN is a house of cards. I’ve lost money buying PUTs betting so. Amazon has no brick ‘n mortar stores. Amazon will be paying more sales tax as it expands.
I also think Amazon is a bit expensive, but if the P/E comes back into the 30s I’ll buy. I own both Apple and Google which to me target two different areas in the high tech business. Lately I’m trying to figure out what new direction Google is heading. I thought for a long time that Apple and Google were in bed together against Mr Softie. Google obviously wants to own the cloud and will monetize once they suck you in to their services. Free doesn’t pay the bills. Apple always has a high cost of entry but then throws little bones at their fan club to make us feel better. I think a long term tech investor could/should look seriously at all three. I’ve been in and out of Amazon a few times, but the current price is a bit rich. I’m happy with Apple which I think is extremely undervalued for a tech juggernaut and with Google I’m waiting for the recovery from the recession to see where valuations fall once the advertising business picks up.
Why not look at companies that have a good chance of becoming a tech titan, rather than one that already is? The tech titans have become trading vehicles. Most do not pay dividends. On that basis I don’t see why any are worthwhile long-term holds, and that includes AAPL. As earnings grow, the p/e will shrink.
