Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (74662)	12/29/2023 4:09:26 AM
From: bruwin	Read Replies (3) \| Respond to of 78777

Personally I wouldn't classify AMAZON as an IT or TECH stock in the strict sense of the word. IMO, AMAZON is more of a traditional business that uses the Internet to communicate and transact with its Clients, while, at the same time, having to have a massive Warehouse/Storage/Sorting and Distribution infrastructure, most especially in the USA itself. That's why the sum of AMZN's "Cost of Revenue" + "SG&A" amounts to 80% of its TTM Top Line Revenue = (298+146)/554 = 80%. In the early days of AMZN, Bezos was using his incoming Revenue stream to build up the Storage & Infrastructure that he would need, as FAST AS POSSIBLE, for his future business requirements and thereby gain, as soon as possible, the MARKET SHARE that he would need to remain ahead of any competitors. The example of UBER that you quoted is probably more in line with the TECH/IT category. UBER is not a "bricks & mortar" business. It's a sophisticated software package, primarily on the Internet, for the interaction between private vehicle owners and their potential passengers. It doesn't even own the vehicles. Much the same could be said, in principle, about Airbnb who don't own the apartments or renting space. But where UBER and Airbnb have turned out to be success stories, just think of ALL those other IT entities that ended up Bankrupt in the "Dot-Com Bubble" days back in the 1990's when interest rates were low and contributed to much SPECULATION. A lot of them had initial soaring Revenue, but that soon fizzled out to zilch. You can read all about it here ----> thestreet.com With regard to your other example of SNOW ---> Here we see Revenues rising while Bottom Line Losses Increase and Retained Earnings move further into the Red :- And here, I would say, the above is reflected in its unimpressive, IMO, chart ----->