Virtual Real Estate
One of you were close, but you are thinking along lines of product and earnings. Its not the advertisers (thats the close one), its the access. The best spot in the strip mall is worth a lot because of the traffic, ease of access, regardless the product. AMZN has staked out some prime real estate, and it really doesn't matter what they sell, or for that matter, if they sell anything right now.
As Walter High pointed out to me, it is already the single best bibliographic source for librarians around the world. It eliminated all the paid services in about a week.
They have traffic, and they have connections to several hundred thousand other sites that link to them now. Heck, you could link your home page to them, and for a good reason.
Their share price model, their valuation if you will isn't about what they sell. It isn't about what they are right now. That, in fact, is inconsequential.
It about what they could become, and that is worth some bucks right now.
lastshadow |
