Two things that many public companies lack.
I've said it several times over the last year, but it probably bears repeating. Amazon has faced the same criticisms and scrutiny since somewhere around 1999.
Jeff Bezos gets asked about spending and profitability. And he replies with his thing about being in it to seize long-term opportunity, which sometimes comes at the expense of pristine, near-term earnings reports.
One reason why we have faith in Bezos and his team is that visibility.Amazon doesn't use talking points (other than for competitive reasons). It states with zero hesitancy that it's a spending a ton. It breaks down where the cash goes. The company provides reasons for strategy. And, refreshingly, it tells everybody it's really not sure when the spending will slow. Transparency. Visibility. Long-term opportunity. And a company not sitting on its cash. It's reinvesting it regardless of what's happening in Washington, Europe or on Wall Street. America loves Amazon. And so do investors. It's just a small minority scratching their heads over it. At the time of publication, the author held no positions in any of the stocks mentioned in this article. Follow @RoccoPendola This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV