This will continue to rise. They must invest in infrastructure when your sales are rising as fast as they are. Sales will continue to rise and at some point they will be completely built out.Once this happens, profits will be the roof.
This is pretty basic to anyone that understands growing a business, you have to invest to grow long term.
"profits on the roof"
Hasn't happened, won't happen, can't happen. As soon as the get "completely built out" margin will only continue to suffer. The reason they don't make any money is because they don't price their goods and services for profit because they want to grow at any cost. As soon as they price in profit for their goods and services, demand will decline. Margin may improve then but sales will decline. A better mousetrap has not been built. They do not have a more efficient model than any other retail organization. It is slightly different than WMT but less efficient. Instead of paying low earning clerks they pay low earning warehouse employees. Instead of paying high rent they pay high salaries to engineers to work on website optimization and infrastructure. Get it? 17 years in operation and the margin only declines each year. No end in sight.
You're exactly correct, Amazon has to keep investing in infrastructure. They're solving problems that have never been encountered before. They're also expanding into new areas. They make plenty of profit to do what they want, and they're continuing to invest in the future. They'll spend 900M this year on infrastructure. Next stop: $300.
I don't think so. There was big volume buying in the AH market. Volume = conviction. They love this pig. Figures America comes off a 2008 bank problem and recreates triple multiple leaders in the stock market with Bernanke printed money. And he celebrates it.