Actually, when Amazon is done with its malinvestment, it will still have a fundamentally inferior cost structure for the vast majority of product it sells compared to WMT, COST and TGT. And that's after spending billions building what they've already financed over decades of real cash flow from running the businesses to make money...
So, I was with a good buddy from Kellogg whose wife ordered 25, 50 and 75 lb freeweights for him for Christmas. Came in 3 separate shipments. He's a prime member... Good business model. Sure, it is an extreme example. But I'd love to hear the analysts explain why they think that is so good for Amazon. IMHO, it simply shouldn't carry stuff where the math doesn't and will not work.
The relative economics of clicks versus bricks depends upon product, category and consumer characteristics... and some macro drivers as well. Amazon is moving to digital content wherever it can because it knows the core online commerce economics for most physical products are one big fairy tale. But, it will not be able to capture meaningful rents there either.
The scam is almost exposed. This earnings report sows seeds of doubt. Next one exposes the scams real economics (holiday sales density masks the extent of the flaws).
"Once the massive build out and business expansion is done, Amazon will suddenly surprise to the upside big time and all analysts will adjust their forecasts. But, by then, Amazon would be $500+ stock."
The award for the most idiotic post of the week goez to this poster.... Amzn exceeding low balled "estimates" after the bezos "build out" at the top of the levered commercial realestate market will coincide with huge corporate welfare bond debt comming due in 2015 and the stock will be trading sub 80.... By the time amzn scorez any real earningz (if they can even do so), the stock will have tanked and bezos will have cashed out.... Bezos timed the bond issue with the release of massive locked up sharez and iz DUMPING hiz stake in drovez az he cashez in on the debt issue, the baggiez buying here, and 401 k and pension fundz loading this trash onto the general public... Gs and ms bond issuerz now pumperz to cash in their stock feez for underwritting trash bond debt in 2014-2015 will turn into BOND BULLIEZ and obscond the "build out" of corporate offices, warehouses, and commercial realestate for 20-40 cents on the dollar while the sharez drop from 80 to 20 on their way to BK... Share holderz will end up with 0.00 in 2015-2016 with a 3 cent class action lawsuit kicker, or if they are lucky and the financial markets az a whole arent locked up and if a white knight wants to associate themselves with what will be a very damaged brand, the white night will scooooooop up what remainz of scamazon and assume its debt for 3.00 / share or less and the sharez will be folded into a new ticker ....
This stock iz a scam, and its buyerz soon to be baggiez along with knife catcherz and unsuspecting ownerz of it in their retirement mutual fundz will be mercilessly shredded.
and owns about 87 million shares you idiot. keep trying the scare tactics you idiot. Because "your blood and guts" distribution" blah blah blah has done nothing but see AMZN skyrocket against. What a fool.