>>You have not explained the mechanism of this "amazing" money making ability AMZN will display, nor responded to Glenn's requests for any hint of what you think you see that we do not see (except for the always amusing "they lose money on every sale, but they'll make up for it in volume").
You are putting words in my mouth. That's not good.
I've spelled it out before, but I'll do it again:
I don't care that Amazon loses money now. As long as interest rates stay low (long bond scored record-low yield today), and Amazon can continue to show that it is out-maneuvering its competition and growing the top line, then the stock should continue to out-perform.
Amazon, like Walmart in the 1980's or Home Depot today, is in the position to benefit from increasing returns. It has cornered a critical mass of real estate on the portals, and as it scales it will leverage everything from these partnerships to its leading brand to its distribution system. Its purchase of Junglee may allow it to source very efficiently, much like much like the CUC model used in Shoppers' Advantage.
Internet commerce is exploding and Amazon is leading the charge. Amazon has first-mover advantage and its model allows it to enter more and more of that market from one familiar interface.
Amazon's management is held in very high regard by the institutional community, and institutional money is generally very patient. Amazon has the momentum to attract and keep the best talent, a huge advantage over all its current and potential retailing competitors.
It all boils down to a speculative bet, but I think the ingredients are there for a huge payoff. I'll trade the stock here and there to maintain some stability, but I want to be long Amazon most of the time. |
