With more and more states in the US and countries in Europe looking to collect more (or rather starting to) sales taxes (and in the EU income tax) from AMZN, which to me is a clear sign of losing some of the advantage over other retailers, would that not mean a lower future margin? In CA sales tax is around 10%, if that is gone, in many cases that is what AMZN used as a strategic advantage. So should that mean that the margin has to come down in order to compete, especially on big ticket items?
Either way, I think AMZN has done a lot of innovative things and is constantly improving in terms of faster delivery, no doubt a great company, but the valuation seems very aggressive even for a diversified retailer and Business fields. With any valuation model I use I cannot get to that market cap. DCF, PE multiples, etc. There really seems to be basically no economies of scale, sales are rising, but yet the margin improvement is not there over the last 3 years. After the move over $360 I went short because I felt it feels a Little like 1999 for this stock. Again, great company, but not a great stock.