IS AMAZON ABOUT TO BURST THE BUBBLE?

REUTERS: 

For many years, investors have been very tolerant as Amazon.com has sacrificed profits for rapid growth in sales and as it built new businesses. That patience may finally be wearing thin. The average large-cap fund that holds Amazon has 1.4 percent of its assets in the stock, down 23 percent from this time last year, according to the latest available Lipper data.... 116 funds with more than $1 billion under management that have either reduced or sold all of their holdings in the Internet retailer over the past 12 months....
... Some investors and analysts said that such a drop in fund ownership - in a period when Amazon's shares have been climbing - suggests that large-cap managers increasingly see the company as over-valued, particularly at a time when it is spending tons of cash branching off into everything from selling its own smartphone to producing a Woody Allen TV series. 

Reuters contacted the 25 mutual fund managers who sold the greatest number of Amazon shares over the last year, and none of them were willing to be quoted by name for this story. One fund manager who sold out of his position in the company over the last six months said: "This has the potential to be a phenomenally profitable company, but the shares are rallying on no new news, in our opinion, so we thought we might as well step to the side for a while.” This is not the first time that investors have bemoaned Amazon's predilection for plowing money back into expanding the company's reach rather than realizing it as profit. Jeff Bezos, the chief executive of Amazon, has long said that he is more interested in satisfying customers to earn their long-term business than in short-term earnings measures and has never set a date by which the company expects to turn a consistent profit.

IT DOESN'T TAKE MUCH TO START A STAMPEDE TO THE EXITS.

IF AMAZON COLLAPSES, THEN THAT JUST MIGHT BE THE TRIGGERING EVENT.

SO AMAZON'S NUMBERS - AND HOW INVESTORS WHO STILL OWN STOCK IN IT REACT, IS VERY IMPORTANT TO THE WHOLE MARKET.

BEZOS JUST MIGHT BEAT EXPECTATIONS - IN WHICH CASE THE STOCK MARKET BUBBLE MAY CONTINUE TO INFLATE...

STAY TUNED...