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Can a stock market bull please explain themselves? Let's

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Can a stock market bull please explain themselves?

Let's take a stock like Amazon. What is it trading at? 80x earnings? Kek, it has to grow 80x just to break even with its valuation.

No one is it business to break even. To buy it you must unironically believe it's going to grow 160x.

A-are you on acid?

Yeah, yeah, "markets go up in down, but in the end they always go up a little bit"

Just because you repeat that over and over doesn't make it true. Look at a 30 year Japanese chart. STOCKS WILL NEVER MAKE A NEW HIGH IN OUR LIFETIMES.

A special thank you to all dip buyers over the next 30 years, you are directly funding my vacation home in Malibu. Oh gee, look at the markets today. It's a good "opportunity" for dip buyers.
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Stocks are like magnets.
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>>983485
Investors buy a stock for INVESTING... That means sometime in the future... So the current price of a stock's value has future expectations factored in
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>>983485
what about dividends
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>>983538
Yes, but the future expectations are delusional

>>983575
Well, a dividend paying company that you believe can keep paying dividends could be a good investment. Still, I assume most of them are bid up, putting your principal at risk. Over the long term, dividend paying stocks are more likely a financially sound investment than other stocks.
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>>983526
How the fuck do they work?
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>>983485
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>>983485
Stocks like Amazon/Apple/Chipotle/Tesla don't trade on fundamentals they trade on hype and always will
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>>983485
Amazon is correctly priced using discounted cashflow accounting.
Bezos is a growth fetishist. He believes this is still the nacent stages of amazon.
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what if i told you, It's all an illusion?


If the market continues to go up... OP is a faggot
If the market goes down... OP is a faggot

No matter what... OP is a faggot

get your money how you want to OP, just remember, you will always be a faggot.
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>>983788
>Amazon is correctly priced using discounted cashflow accounting.
I hear this a lot but what does it mean?
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>>983837
It means you estimate all the financials for the next 5-10 years (revenue, costs, expenses, etc) and calculate probable stock price based on how much money it is actually expected to generate, as if it were a bond paying out every year or something.

That's as opposed to pricing stock based on what you expect other people to incorrectly think it's actually worth.
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>>984028
>It means you estimate all the financials for the next 5-10 years (revenue, costs, expenses, etc) and calculate probable stock price based on how much money it is actually expected to generate
So basically the PE ratio. Which says it's overpriced as fuck.
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>>984038
No, the P/E ratio is the current price of the stock divided by current earnings per share. DCF analysis has more to do with projecting free cash flows into the future and discounting them back to present value.
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>>983788
> He believes this is still the nacent stages of amazon.
wat
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>>984054
Yeah that sounds prone to bullshit. The Shiller P/E is >600 it's overpriced.
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>>983485
>80x earnings?
Try 960x. Its EPS is $0.70
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>>984061
It's not really. DCF is pretty much the primary way that companies and projects are valued. It's just highly dependent on the set of assumptions that you make going into it. I think >>983788 pulled that statement out of his ass because that's a hugely broad thing to say without citing a source or providing your own calculations. DCF analysis as a process though is a really valuable tool.
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>>984075
this
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HURR LOOK AT ME IM A FUCKING RETARD WHO THINKS THAT HE KNOWS BETTER THAN MILLIONS OF INVESTORS WITH BILLIONS OF DOLLARS. I JUST LEARNED ABOUT P/E RATIOS YESTERDAY AND THAT MAKES ME AN EXPERT

EARNINGS ARE ZERO BECAUSE BEZOS IS USING POTENTIAL EARNINGS ON EXPANDING AMAZON FURTHER. WOW
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>>984153
>EARNINGS ARE ZERO BECAUSE BEZOS IS USING POTENTIAL EARNINGS ON EXPANDING AMAZON FURTHER. WOW
Even if you take operating income over the last 12 months (just revenue - operating expenses) to be the 'earnings' part of the EPS you get an EPS of 3.6 and PE of 185.
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>>983662
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>>984060
yea.
he is also really drinking the internet of things kool-aid, which is why they are taking massive losses on their various amazon appliances.
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https://www.youtube.com/watch?v=sGvOyAOkwW4
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The market believes that Amazons profit will grow and that the stocks are worth the current price.

If you dont, just dont buy Amazon stocks.
Problem solved.
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>>984061
shiller P/E was made over 50 years ago. The market has changed. It was also before serious tech and the internet. also capital gains taxes have changed the market for the consumer drastically.

>>984227
Its really possible but they haven't done it right yet. Have you seen those brand buttons. once some iteration of that shit takes off it'll be stupendous.
Imagine every product sold has a reorder chip, and when its done if you want another you just pass it by your Amazon scanner and viola 2 days later at your door. they've already got the best product recognition software around.
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>>983485
>A special thank you to all dip buyers over the next 30 years, you are directly funding my vacation home in Malibu. Oh gee, look at the markets today. It's a good "opportunity" for dip buyers.
Today OP was pretty cool.
Don't forget, it's the debt issued as cash in government bonds, that's why stock values inflating is permanently sustainable.

The eventual result is the most secure and sustainable companies trade at 1,000's of times their earnings with no one being able to get their hands on more than a few 10ths of a % of the float.
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>>984731
And the reason stocks aren't already at that point is the risk of companies being taken under because they've operated "in bad taste" - even the best of companies are subject to such risk.
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>>984731
You don't really believe that, do you?
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>>984680
>shiller P/E was made over 50 years ago. The market has changed. It was also before serious tech and the internet. also capital gains taxes have changed the market for the consumer drastically.
Idk mate it seems to be a semi-accurate indicator of likely future returns (or lack thereof, seeing it's inverted).
Can you give any concrete justification for why 'this time it's different'?
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>>984226
He doesn't want a fuckin' sell-side analyst,
They all muthafuckin' lyin', and gettin' me pissed.
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>>984153

> enron
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Even though amazon is "overpriced", due to it being categorized as a tech stock.
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If I were murrican like you guys, i would look for cheap stockw on Polish/Ukrainian/Hungarian markets. Not only you take advantage of strong dollar, but you have a chance to buy rather undervalued companies like ZAP or MOL that pay you very nice dividends.
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>>983485
How strangely erotic.
Thread posts: 35
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