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Friday, April 19, 2013

$goog gets a free pass with margin compression

So, over the past few months we saw:

1. $amzn miss on earnings and revenue, while showing a deceleration in revenue growth, but the stock remains elevated.

2. $goog has a fairly sizable margin compression, and the stock is allowed to remain elevated.

But the stock of the company that is literally guiding the entire evolution of computing forward, along with the copy cat approach from AMZN and GOOG is rewarded with a severely depressed multiple.

Sometimes, I fucking hate Wall Street.

People who 'think-they-know' can argue until they are blue in the face as to why the above is taking place. Whatever the reason, I will counter with why the reason is bullshit.

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