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Shah: The One Thing Donald Trump Is Right About

2 | By Wall Street Insights and Indictments Staff

This week on Varney & Co, Shah and the rest of the panel took on Donald Trump’s remarks on the Fed, the economy, and the valuation of tech stocks like Amazon.com Inc. (NasdaqGS:AMZN).

And Shah said that Trump is absolutely right about one thing…

To find out, just click below.

2 Responses to Shah: The One Thing Donald Trump Is Right About

  1. Paul Wyman says:

    Dear Shah and Varney:
    The reason why Jeff Besos does not want higher margins is because that would enable any competitor to also make a profit. Yes it sounds like a very odd tactic, but his determination to deliver rapidly and provide a no-questions asked product return guarantee based sales policy makes it impossible for any exact competitors to gain any traction. This little trick of near zero margins, has not only succeeded in preventing any internet copycats from gaining any ground on Amazon. And it has also destroyed a many of his competitors, to wit, a great many bricks and mortar retail stores. Should we now say, wait a minute, it’s simply not fair to destroy your competition, then libertarian Besos will simply reply “But this is the USA, and in this country we believe in free competition”, and Fox News will then have to eat humble pie. I think the only way to get rich investing in Amazon is through the long-term 1 or 2 year calls, not through dividends. They don’t follow the GE strategy.

  2. BK says:

    What Amazon investors and watchers seem to be ignoring is that Besos had already siphoned off billions by selling Anazin shares for his personal account. In other words, its investors who choose to accept the outrageous stock price, mathematically unsustainable for perpetually deferred profits.
    Also, what the market is missing is that stores like Macy’s, Costco, Walmart, and new outfits like Wayfair are carving out billion dollar niches – despite Amazon’s low prices. Same with the web services business.
    This is not to detract from Bezos innovative strategies for Amazons individual segments. Simply a reminder gazelles survive despite of predators as do lions , elephants and apes by adaptation. Not all brick snd mortar will become extinct. May be we will buy things from a local robotic operated warehouse with a discount for personal pick up based on saved shipping costs. Instant gratification at Amazon prices. Best Buy, Apple stored are good examples.

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