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  • allnewspricedin allnewspricedin Feb 1, 2013 10:57 AM Flag

    Amazon Only Looks Expensive

    It's really not expensive. Why? Profits are low because Amazon has invested over $10 billion dollars in 2012 alone on fulfillment centers and huge data centers. Did they have to invest that much money in 1 year? No they didn't. That money could have gone to the other side of the ledger, and AMZN management could have easily just posted a big EPS instead of reinvesting the capital. When you consider the company has a $120 market cap, but invested $10 billion back into the business instead of showing a large EPS, AMZN is not expensive. And you know people were saying the exact same thing when AMZN was trading at $45.......looked just as expensive then as it does today. A couple other interesting AMZN points. There are about 365 million shares of float, and Jeff Bezos own about 25% of the float personally. Finally, I don't see any direct competitor to AMZN, and IMO AMZN already has the most sophisticated and most efficient distribution system in the world.

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