by Michael Churchill

NFLX and TSLA look insane to me. Not at all clear to me that there is any sort of calc that has TSLA with normal gross margins. NFLX capitalizes content costs, which is like Caterpillar capitalizing the cost of making tractors. Buying/making content is cost of goods sold — not capex!

GOOG, FB and MSFT make a lot of money and valuations are not crazy.

AMZN is insane in the same way that NFLX and TSLA are. The operating margins on selling books are WILDLY negative — and only offset by the cloud-services business. Now … that doesn’t seem right from an anti-trust standpoint. Amazon is using cloud money to wipe out the entire country’s retail infrastructure. How about a Sherman anti-trust case against them?

Leave a Reply