Amazon.com Announces Third Quarter Sales up 34% to $43.7 Billion

Do these analysts who put these "estimates" together have a way of low balling the numbers on EPS and revenue on the thousands of stocks to make each quarter stand out??
 
hajimow said:
Now it shows AMZN has matured and can provide earnings. So it should have a reasonable P/E like Walmart. It should not be treated as a speculative stock so the stock should actually go down.
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Why Amazon after 20 years is still looked at as a speculative stock is beyond me....
 
ajacobson said:
Wasn't someone on the board promoting shorting the 980 straddle going into earnings? Ballsy move - but another earnings surprise that could blow out an account.
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It was me. 980 straddle would give you $45. That trade would give you protected till 1025 and then it will incur loss. As someone said 100 shares of AMZN is the price of a condo in some states so you do not do 100s of them. Then when you are short at 1025, you keep selling weekly 1025 PUTs till you get out. After a few weeks you can get out or you can thrown white towel if you feel so :)
 
The martingale - keep selling until your recover. Martingale is gambling term. You lose you double your bet until you win. The only problem is the amount of capital it requires. Pretty soon the capital required is enormous.

Given your view on the stock selling the puts just because the math works seems pretty inappropriate.

If you actually sold the straddle - good luck at the opening tomorrow.
 
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I don’t think rolling puts is akin to martingale. No more capital is needed over and above the original position. It’s just a way to increase basis.
 
It’s just a covered put on short stock from the assigned call. Nothing fancy. If it expires OTM he just writes another put. That’s how I interpret what he’s doing.

0% martingale.
 
hajimow said:
Now it shows AMZN has matured and can provide earnings. So it should have a reasonable P/E like Walmart. It should not be treated as a speculative stock so the stock should actually go down.
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Got news for you, Amazon shareprice will have to drop 90% to get down to that level of reasonableness. And if that happens, pack your bags because we are heading back down to 1400 in the S&P 500.
 
Quoting 1090 - 1100 by UBS right now. Doubt it will hold that into the opening unless we see a big overall rally tomorrow. Should be an interesting day given the AMZN, GOOG and INTC reports.
 
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