The comment comes from the CNBC contributor after news broke out that Amazon.com, Inc. (NASDAQ:AMZN) has partnered with Woody Allen for the acclaimed entertainment industry personality to make his first ever television show.
Allen will be the director and writer for the show which is still being called the Untitled Woody Allen Project. According to Amazon.com, Inc. (NASDAQ:AMZN), the show will be available in 2016 through its Prime Instant Video service in three territories: U.S., U.K. and Germany.
“None of the news today does anything to change the story that the street is worried about and that is, will they actually ever earn any money? They’ve been given a pass their whole career, their whole time being public, on a company that’s going to grow revenues,” Kelly said.
Often criticized for lacking spectacular bottom line growth despite continued top line growth, Amazon.com, Inc. (NASDAQ:AMZN) and its boss Jeff Bezos has made it a practice to spend massive amounts in research and growth.
This year, Wall Street seemingly turned on the internet commerce giant as more and more investors and industry observers tired of the company’s growing revenue but stagnant profit.
According to Kelly, it’s still not clear what Woody will be making and what Amazon will have to shell out for this project. He said it’s great that Prime is finally getting more traction but the news of the Woody Allen project does nothing to convince him to buy the stock.
Nonetheless, his Fast Money colleagues countered saying it could be argued that the company may not make a profit but Bezos could just as easily scale down the company’s spending and convert revenue to massive piles of profit.
However, it was also discussed that valuation may finally catch up to the electronic commerce giant and thrash it.
Brett Barakett’s Tremblant Capital is an Amazon.com, Inc. (NASDAQ:AMZN) shareholder. It reported 341,062 shares in the internet commerce behemoth by the end of September. The stake which increased 15% compared to the preceding quarter, makes up 3.91% of the hedge fund’s portfolio.