Posted on 12/04/2014 7:06:08 AM PST by C19fan
At Business Insider’s annual Ignition conference Tuesday, CEO Jeff Bezos explained why Amazon's stock price keeps rising despite almost zero profits: The company continues to invest in new businesses, and Amazon’s investors are OK with that. "If you're going to take bold bets, they're going to be experiments," he said. "And if they're experiments, you don't know ahead of time if they're going to work. Experiments are by their very nature prone to failure. But a few big successes compensate for dozens and dozens of things that didn't work.”
But Amazon hit a road bump in 2014: Its stock is down 18 percent, and investors are no longer optimistic about the company’s outlook. This year has exposed the limitations of Bezos’s business strategy.
(Excerpt) Read more at newrepublic.com ...
That's because Research & Development are considered an expense; so the very aggressive Research & Development stance Amazon takes eats
all the money (i.e. mathematically, it cancels out).
Yep...
Very profitable ... but all that profit is rammed right back into further expansion & development, so it never appears as “profit” per se.
“Internet sales tax”
Prices seem higher too. I find myself searching and buying from other sites more than I’ve done in the past. If I buy thru Amazon, it’s usually after I’ve watched a product longer than previously.
Vendors got screwed majorly by Amazon’s return policies that has lead to massive fraud. Many vendors no longer participate with Amazon.
Amazon’s fraud is that crooked customers claim they never received a product so Amazon sends another. This is at the expense of the vendor. The vendor gets no say so in the matter. Many organized criminals know this, and some vendors claim 30% of all product shipping is due to this “Didn’t get it” fraud. No vendor can sustain a 30% loss rate.
Ask around now. Foreign orders are fraught with red tape, reluctant suppliers, and foreign meddling. The result is that Amazon virtually refuses EVERY order from outside the U.S. The result is that 99% of the time, no matter what the product, buyers are met with, "Cannot ship to your location".
The second big killer, Amazon started trying to compete with Ebay by selling used crap. In the beginning, it was all brand new product. Now, unless you are really careful, you don't know what you are buying.
Amazon slit their own throat with these recent policies. And now they want our sympathy? Idiots.
Speculation. If I can buy Amazon at 10 and convince my rival investors that it's the greatest thing since sliced bread and wouldn't they just love to buy it from me at 20, that's a good day. Somebody always ends with a garage full of tulip bulbs in the end, though.
Yes, it was Electrolux through Amazon. I’m still out $40.
Heck, I still buy a lot of stuff from Amazon.
But I would also argue it ain’t worth hundreds of bucks a share...
I think many middle class white Americans are not spending as much, cutting debt and are saving instead. People now have to spend more for health care deductibles and that eats into spending and saving money accounts. I think Christmas might be bad. The economy is not that good and pay is not keeping up for many. I think the middle class is shrinking and that is where the lion’s share of the spending happens. Personally, I am disgusted by the gross Obama globalist CEO attitudes and culture and don’t want to feed the beast. I doubt I am the only one. Yesterday we went shopping for a new refrigerator because ours pooped out. We were the only shoppers in the store and there were big sales and discounts.
I see less lawn service companies around than before. I see less big home improvement projects going on. And...I think people are just less happy and spending comes with a sense of having a positive future and well being. We have an administration and media that is a human depression and division hate machine. They are killing freedom and what is left of freedom’s culture. The entertainment industry - music and movies - are going down as fast as the talent and intelligence in Hollywierd has diminished.
Amazon shoppers, in general, are known to pay more for items. There is an entire industry out there known as "retail arbitrage" where the sellers buy the product at low prices retail and resell on Amazon.
We buy quite a bit off Amazon. It's typically the first place we go and look for something anymore. Stuff we used to hop in the car and go get, we just order. Pool filters, beef jerky for my mother in law, CDs, books, etc.--we don't even think about brick and mortar anymore.
See post 37 and the reply in 48.
Vi went third party. Hence the return charge.
Me? I use Amazon Prime for the free shipping. I’ve never bought third party. Too risky and the Amazon direct prices are just as cheap.
Walmart didn’t do all that well, either. It boils down to “the American middle class is tightening its belt because they see more trouble coming”.
Sounds like a stock owner............
Investors are overly emotional. Revenue growth of 16% in this economy is borderline magical, people shouldn’t be whining.
I won’t buy anything at all from Amazon.
First — they support abortion.
Second — a personal experience where my daughter sent me a gift (glass canisters) and one was broken. She notified them and they sent another box. Again the box was damaged. I wouldn’t even open it, but returned it.
Lousy business in my opinion that they can’t pack or ship things correctly.
Oh they make money. They just reinvest it. The only reason Amazon is so close to unprofitable is because they don’t let money sit around in the bank, they use it. They try new technologies, they grow the business concept, they acquire businesses. They’re in no danger of going bankrupt anytime soon.
So it’s OK with you that (by using Amazon) you are supporting abortion?
Selling it the next time they do something buzzworthy that spikes the price. It’s a buy and sell stock not a buy and hold.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.