AMAZON is in a massive stock valuation bubble and will crash hard, warns analyst

Thursday, August 10, 2017
By Paul Martin

by: Ethan Huff
Thursday, August 10, 2017

Over the past five years, Amazon’s stock price has gone to the moon, rising from about $200 to almost $1,000 per share in recent days. But the pomp and circumstance won’t last, warns a prominent stock market analyst, as all of this wild growth represents little more than speculative mania – meaning the bubble has reached epic proportions and is on the verge of a big fat pop.

Things really started to take off in 2015 when Amazon’s stock value more than doubled from $285 per share in January of that year to $575 in October. In the 21 months to follow, that same stock value doubled again to nearly a grand, to the excitement of investors. There seems to be no end in sight for Amazon’s market cap – or is there?

When you really stop to consider why Amazon’s stock value has increased so significantly in this relatively short period of time, it’s difficult to come up with a solid answer. It’s not as though the general sector in which Amazon does business – primarily the sourcing, moving, storing, and delivering of goods and services – has seen this type of growth. The latest figures show a mere 2.2 percent annual increase in this particular sector of the economy, which doesn’t match Amazon’s astronomical growth rate.

So what is it? In truth, it’s a whole lot of people betting in the Wall Street casino that Amazon is doing fantastically, what with its recent purchase of Whole Foods Market and its continued and growing dominance over the e-commerce realm. In other words, it’s speculative greed – not to mention central banking fraud – that’s driving up the price of Amazon stock, and not necessarily anything wonderful that the company is supposedly doing in the market.

“The Amazon business model is fatally flawed,” writes David Stockman for Daily Reckoning, adding that Jeff Bezos’ e-commerce business strategy “is that of a madman – one made mad by the fantastically false price signals emanating from a casino that has become utterly unhinged owing to 30 years of Bubble Finance policies at the Fed and its fellow central banks around the planet.”

Most of the current economic growth is taking place among the Big Six, and most of this is a speculative bubble a well

The Rest…HERE

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