By Harry Dent
Amazon is the best of this bubble, and in some ways the worst!
Yet again, it’ll pay zero taxes to the IRS for 2018!
No taxes on sales of $233 billion and profits of $10.8 billion last year.
Not a dime.
Nada!
This is just wrong.
And it’s one of many things that are wrong with this bubble!
I just had to record a video to talk to you about it.
https://www.facebook.com/EconomyMarkets/videos/380711839385670/
Amazon got up to a $1 trillion valuation at its peak in 2017. At that time, it was 5.6x sales. That’s crazy. A normal valuation is 1x, maybe 2x for a growth company.
So, we’ve got companies making record profits and enjoying tax cuts. AND they’ve had a QE tailwind for years…
All of which they’ve used to buy back their own stocks.
Yeah! That’s a recipe for trouble.
First though, they’ll present Dark Window profit opportunity this year!
Harry
Follow me on Twitter @harrydentjr