This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Open Your Mind: Amazon Is NOT Netflix

Quarter after quarter, I tell you what will happen with AMZN. And, quarter after quarter, it pretty much goes down something like this: Amazon reports whatever it reports -- it really doesn't matter -- the stock initially drops, bears think the world finally righted itself, but, lo and behold, AMZN finds support and moves higher. This next leg will take the stock towards and quite possibly past $300.

If you're a media member, stop writing completely asinine things such as the following lead to Tuesday's The New York Times earnings rehash: "Amazon sold many more things in the fourth quarter while barely bothering to eke out a profit" (emphasis added).

And, if you're an otherwise intelligent Tweeter (cuz I see Tweets from this guy @cordial all of the time and I know he's no dummy), stop, drop and roll before you Tweet things like this:

That sentiment came in second to the runaway victor Yeah but, you still can't justify a price-to-earnings ratio of 3,000.

There's this unfortunate misconception that complete fools run Amazon.com. Guess what? These guys, led by Jeff Bezos, are quite smart. In fact, they have been running this business amazingly well -- using the very same type of philosophy in place today -- for more than a decade.

So, stop with the yeah, buts and, please, if you're writing stories about Amazon, have some respect for what Bezos and his crew have accomplished. Barely bothering! I won't even waste time on that.

The numbers do not matter at Amazon. Why is this so difficult to understand?

It stuns me that people rip Amazon for not providing enough information on its conference call. There might not be a more transparent company.

Sure they don't break their sales out in a way that would provide competitors with a treasure trove of useful data, but -- and pull out the magnifying glass to get a good read working here -- they tell you, in no uncertain terms, on countless occasions, that, in the near-term, the numbers do not matter.

They outline the philosophy that guides the company on every single call. Jeff Bezos has been telling it like it is -- straight up -- since 1999. In fact, here's what he told Bloomberg Businessweek roughly 14 years ago to the question -- Do you have a goal for when you can throttle back on expenses and become profitable?:

Our strategy is very, very clear: We're focused on long-term returns for investors. And to throttle back on investment now would be shortsighted. When we have less opportunity, that will probably happen. But as long as we have lots of opportunity, we're going to continue to invest commensurate with that opportunity in a very disciplined and methodical way, but in a long-term context. To do anything else, we believe, is irrational.
But we also don't claim that that's the right strategy. We just claim it's ours. And then people get to decide. But we're clear about it. And we do passionately believe it's the right strategy.

Stock quotes in this article: AMZN, AAPL, NFLX 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • 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 Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,438.53 +29.99 0.18%
S&P 500 1,865.98 +1.13 0.06%
NASDAQ 4,095.4810 -0.0350 -0.00%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs