NEW YORK (TheStreet) -- Amazon (AMZN) is bigger than the Federal Reserve, and about as controversial.
Once the Fed began its aggressive bond-buying program, or "QE," many investors starting fearing an equity "bubble" and insisted it was going to pop at any moment. Investors who initiated a short position in the S&P 500 at the start of the year have lost 23% in 2013 so far. Over the past three years the index has risen 48% and over the past five years it's up 86%.
Moral: Don't fight the Fed.
Yes, there are scary things about the company. It produces no profit and in most cases losses money from quarter to quarter. Expenses continue to rise, revenue per employee continues to drop and the valuation is literally astronomical.
So yes, there are good reasons to avoid buying the stock, especially at levels that make value investors scoff and perhaps gag a bit.
But Jeff Bezos' company is simply not a name to short. Unlike the S&P 500, which is up 23% for the year to date and some 80% or so over the past five years, Amazon is up 43% in 2013 and 635% from five years ago, including the post-earnings pop from Thursday night.
A Fed-rebelling short position in the S&P 500 would hurt if it were initiated and never lifted from 2009 until now, but stacking your chips against Bezos & Co. would have proved suicidal.
Most recently, the premiere e-commerce retailer delivered a third-quarter earnings loss of 9 cents per share on $17.1 billion in revenue -- the latter of which is clearly most important to investors.