Amazon.com, Inc. (AMZN)

Value in this is not just the retail business now. It’s got the AWS web service where they are basically an infrastructure platform that is for sale across the web to people that want to put their applications out into the cloud and access them on demand. An incredible franchise that they have developed that is probably the lowest cost infrastructure of the service offering in the marketplace and is growing very rapidly. New services that they are offering to retailers probably means margins are going to be enhanced dramatically over the next 2-3 years. Extremely expensive on a trailing price to cash flow, Price to earnings number. Margin improvement will see earnings catch-up to the price over the next 2-3 years.

Outlook is good but it is an extremely over priced stock. High Multiple. Should be less than 1 for payout but is 4 times. If its growth rate and earnings come down, it could cut in half, literally. Reminds her of the tech bubble. The PE should be less than its growth rate.

This company remains the biggest mystery to him in the whole equity market. Great company, great earnings growth. They don’t have to reinvent themselves and bring out new products. Why it commands a 95X multiple of next year’s earnings is beyond him.

(Market Call Minute.) Transforming retail faster than anybody can know what will happen but the valuation just doesn't make any sense.

April Puts and Put-Spread? Chart shows this company has been in a very clear uptrend. Expensive, but because it had great earnings. A Put-Spread would indicate the stock is going down. You do a Put-Spread to protect yourself. If you don't think the stock is going to collapse, this is not a bad way of doing it.