Hedge fund manager Stanley Druckenmiller talked very positively about Amazon at the Dealbook conference.
Legendary hedge fund manager Stanley Druckenmiller says he loves Amazon because, unlike IBM, it’s not focused on short-term quarterly earnings.
“The last 19 quarters, Amazon has missed their quarterly earnings nine times. They don’t give a damn,” Druckenmiller said at the DealBook Conference Tuesday.
“Oh yeah, I love Amazon,” Druckenmiller said. “Because they’re investing in their future. [Jeff] Bezos is a serial monopolist,” he said, referring to the company’s founder.
Druckenmiller particularly likes Amazon’s profitable cloud-computing business, Amazon Web Services.
You can watch the video at Business Insider.
There is some laughter in the audience when he calls Bezos a “serial monopolist” but he is exactly right. It is precisely what Amazon is doing. (And it is a main part of the reasoning of investors behind the crazy looking P/E ratio of Amazon’s stock.)
On a similar note Wall Street is realizing the immense potential of AWS: “Wall Street believes Amazon has a $160 billion business under its roof”
We talked recently here about Amazon’s AWS advantage. With AWS Amazon is cloud infrastructure wise like a retailer who owns the roads.