Amazon is a stock that seasoned professionals think it is their duty to short. They feel it is just very important to bet against a company with that high a price-to-earnings ratio.
The shorts don't care that Amazon might take over the world. They think it is priced as if it will. Which means there is nowhere but down. But the bulls say that the company is spending like crazy to be the biggest and the best, and that means that when it wants to, it will show the profitability that makes the price-to-earnings multiple much lower.
Tesla? What can I say? The simple truth is that it is a really cool car, and my friends who have them love them. I would like to get one. I bet that many who are short the stock would like to get one. In the meantime, the CEO does an equity offering to pay off a despised government loan, and the CEO buys a ton of it! That was supposed to be the chance for the shorts to cover.
No such luck. Not enough stock. So the short-busting continues.I know when I can value something, and I know when I can't. I can't value either of these companies, so my bottom line is that they are dangerous both ways, for gamblers who gamble without an edge, so count me out. I will let others do the wagering. At the time of publication, Action Alerts PLUS, which Cramer co-manages as a charitable trust, had no positions in the stocks mentioned.
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