Open Your Mind: Amazon Is NOT Netflix

NEW YORK ( TheStreet) -- I understand not wanting to step out of your comfort zone. Truth be told -- it's an issue I have struggled with for years. To this day, I deal with anxiety over things that could possibly happen; as such, it's tempting to want to preserve the status quo in my physical and psychological environments.

But, man, that's a bad way to float through life, especially from an intellectual standpoint. Things change. And even if they don't, there's often a legitimate exception to what you think is the rule.

At times, that thing you can't seem to wrap your head around is indeed the product of an irrational world. That doesn't mean you're right ... right now. It just means that, at times, you'll end up vindicated. I expect that to happen with me vis-a-via Apple ( AAPL). It happened with me on Netflix ( NFLX) in 2011. I expect the same to happen again in 2013 or 2014.

I'm proud of myself for how I'm handling Netflix this time around. I'm executing the intellectual exercise stubborn folk such as myself loathe -- I'm budging. In 2011, when I was certain Netflix would crash, I jumped in the front of the train that was NFLX stock. I refuse to make the same mistake twice. I know Netflix should crash again, but I have been bullish on the piece of paper that is NFLX stock from around $60.

Sometimes you have to budge; at other times, you just have to come completely out of your comfort zone and come to terms with a reality you not only cannot comprehend, but think is patently absurd. That's what bewildered bears absolutely must do with ( AMZN). Quite frankly, the persistent bearish sentiment in the face AMZN moving higher -- almost in a straight line -- has become comical.

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 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.
Make no mistake about anything I've said here: Long-term profitability and building an important and lasting and sustained company is incredibly important to us. We just believe that, by investing now, we increase our chances of achieving those things.

So, he's telling you -- in no uncertain terms -- that Amazon will sacrifice the look and feel of short-term financial metrics to seize long-term opportunity. Could not be more precise. (That was 17,256.67% worth of upside ago).

Amazon's CFO said pretty much the same exact thing on yesterday's call and every one prior to that for as long as I can remember. Of course, AMZN ended Tuesday's after-hours session up another 9%. We're talking all-time high material folks.

But, sure, keep up the snark, the yeah, buts, the typical references to the dot-com bust and yelps over valuation. At least you can get a kick out of frustrating guys like me, but like Amazon and Bezos, I'll always be prepared with a strong comeback:

--Written by Rocco Pendola in Santa Monica, Calif.
Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.

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