AMZN is Just as Much "Bricks and Mortar" than WMT and Best Buy
With all these warehouses they are building to house merchandise and fulfill orders, they are no better off than the big box stores. And they have shipping costs that its peers don't.
They already have razor thin margins and it wont get any better anytime soon. At best, they save a little on wharehouse space cost vs. retail space but to the point of being over 100X more expensive than Walmart ?!?
Anyways, as AMZN grows so does their need form "Bricks and Mortar" and it will never "grow into" these insane valuations.
If you want a play on e-commerce, EBAY has a way better business model.
A bad option, but an option nonetheless. EBay has vastly superior economics. Amazon is now a logistics company being valued as a secular technology grower typified by high margins and significant network effects. This will prove to be a bigger bubble than CSCO at its peak.
Exactly. Amazon is A to B to consumer just like retailers, except retailers have the consumer do the pick-pull of inventory at point B. AMZN's supply chain superiority is smoke and mirrors. The numbers don't lie.
Not fully true. AMZN has business beyond the retail end, such as providing the bandwidth for Netflix and others! Nonetheless, AMZN is still hugely overvalued today. But do you have the stomach, the patience, and the bankroll to sell short?