The above graph shows Amazon’s operating profit and net income in the second quarter for the past four years. As their operating income declined over 70% in this period, the net profit has collapsed. How long can Amazon operate at a loss? The graph below shows why we are heading for an economic collapse. As Amazon’s profits collapse, their stock price is up almost 50% in the past seven months.
This trend can be attributed to investor exuberance, investor stupidity or manipulation of the stock market. Who has the power to manipulate the stock market? Who has the power to authorize the US Treasury to print money? Would you invest your shrinking dollars in Amazon stock? Or any stock?
So what happens when the bubble bursts?
David DeGerolamo
Plugin by: PHP Freelancer
