Sarhan Capital CEO: Amazon Needs To Show Good Guidance

When asked for expectations ahead of the Amazon.com, Inc. AMZN earnings report, Sarhan Capital CEO Adam Sarhan said that while the company’s P/E ratio is off the charts, it also has a history of selling investors the future.

Selling The Future

He explained that Amazon.com keeps telling investors that it will be able to monetize everything its doing in the future.

“They still haven’t shown big improvements in that department, but they’ve got great salesmanship, and that’s all that matters when it comes to the future,” he said.

Investors want to know when the company will be able to monetize and start putting up some good growth numbers, Sarhan said.

The Noose Is Tightening

He does think that Amazon.com will provide some good guidance because it knows that shareholders are very important to the company.
“More importantly, Amazon knows it can only push its luck so far,” he said. “The noose is tightening around its neck.”

Show Investors A Strong ROI

If the company is able to perform, raise guidance and show investors a strong return-on-investment, Sarhan said the stock will react very well.

If Amazon.com just keeps kicking the can down the road, he warned, investors’ patience is running very thin.

Shares of Amazon.com traded 0.12 percent higher in Thursdays session.

Brianna Valleskey contributed to this report.