I had to bring David Gardners post on TMF, over here.
He states that Bezos will get revenue from selling his customers info to other entities.
I'll have to buy my hard-porn somewhere else.
>>Trick wrote, "Months and months worth of substantial analysis and argument have been put forward right here to back up the margin point (in practice negative, I believe)."
... months of repetitive statements that mostly failed to recognize Amazon's increasing customer base across an increasing diversity of products, leading to increasing amounts of information it gathers on its customers, highly useful information for coming advertising revenues. This is a significant part of Amazon's future business model that bears can presently point at and say "It doesn't exist," as if it never will, and as if Amazon will only ever be a virtual bookseller that can't make a profit at its supposed "core business." But this "substantial analysis" has for months and months largely ignored this point.
Also, most such analysis is backward-looking, and lacks imagination. You simply have to have an imagination to envision what the future might look like for Amazon.com -- you can then use near-term events to decide for yourself whether the company can fulfill your vision. To my way of thinking, Amazon.com could turn into the following things: a publisher (highly likely, in my opinion) and a media company (less likely but possible -- any site as trafficked as Amazon's, with the likelihood of only getting more trafficked, can become a media company).
Some will of course call these things preposterous, while the market in fact does not. Meantime, its brand expands and gains increasing recognition. And one sees few if any competitive inroads being made. Globally.
These are mostly the same reasons why we bought the stock in the first place.
Finally, management is so much savvier (quicker, more customer-focused) than its competitors that it hurts... hurts the competitors, that is. Continues to.
Fool on,
DG<< |
