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Peter Larson

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  • Amazon obtains $2B credit facility; Indian ops reportedly probed [View news story]
    But the terms DO match. The credit facility is good for two years, and the CFO plans on retiring next summer.
    Sep 5 11:34 PM | 1 Like Like |Link to Comment
  • Amazon’s Chief Financial Officer to Retire in Summer of 2015 [View article]
    Tom Szkutak deserves recognition as a genius.
    Sep 3 10:03 AM | 1 Like Like |Link to Comment
  • Why Amazon Acquired Twitch: The Larger Picture [View article]
    It's not hard to understand: Amazon missed the boat.

    If Amazon doesn't buy Twitch, Twitch might start selling games and consoles directly. This would cannibalize Amazon's business and possibly pressure margins.

    There's maybe a quarter billion in upside, the rest is just defense.

    Expect to see more of these acquisitions every time someone thinks of something Bezos should have.
    Aug 29 10:09 AM | Likes Like |Link to Comment
  • Amazon halts some Disney movie preorders [View news story]
    "Here at Amazon we firmly believe that if you repeat the same thing enough times people will start to believe it,"

    -Good show.
    Aug 11 12:53 PM | Likes Like |Link to Comment
  • The Characteristics Of High-Return Stocks [View article]
    So according to Preston some of the multi-baggers were growth stocks, some were value, and some were somewhere in-between?

    Gee, thanks.
    Aug 8 11:50 PM | 1 Like Like |Link to Comment
  • Amazon's Battle With Hachette Has Negatively Impacted Income, But Those Costs Are Temporary [View article]
    Amazon lost me as a customer before they lost me as an investor.

    As a customer, I don't really care if books cost $9.99 or $12.99. It's $3, big whoop-de-doo.

    I WOULD however, greatly prefer Amazon make a legitimate effort to carry ALL books. Even if that means allowing publishers to potentially hurt their own business by pricing too high.

    I would also prefer Amazon use the proper EPUB format, standard DRM, and not place ads anywhere NEAR books.

    That's what I want.

    Until they start LISTENING, instead of telling me I want the wrong things, I am shopping elsewhere.
    Jul 31 09:37 AM | Likes Like |Link to Comment
  • Update: Amazon Finally Enters A Market With Pricing Power [View article]
    I think they're fighting with big publishers because Jeff Bezos is just plain obnoxious in person.
    Jul 28 02:15 PM | 1 Like Like |Link to Comment
  • Update: Amazon Finally Enters A Market With Pricing Power [View article]
    I think Amazon is in multiple markets with pricing power.

    The problem is that none of those markets are anywhere near big enough to cover their massive fixed expenses, due to overbuilding warehouses, overpromising to Prime customers, and post-due bills from years of tax evasion.
    Jul 28 11:34 AM | 1 Like Like |Link to Comment
  • Update: Amazon Finally Enters A Market With Pricing Power [View article]
    I think it will be a while before *everyone* has a 3d printer.

    But I don't think it will be that long before *everyone* can buy 3d printed merchandise at their local Target, Walmart, Home Depot, etc. Those place can also have 3D scanners.

    What is the point of printing something today if you still have to wait two days for shipping?
    Jul 28 11:17 AM | 2 Likes Like |Link to Comment
  • Facebook And Google Create Natural Monopolies: Both Create Their Own Barriers Of Entry [View article]
    But it is difficult to build a better search engine:

    To make a search engine work, you have to find and index all the web pages.

    This takes a lot of time, processing power, and realistically, search engine optimization from the websites themselves. New pages are found by following links from existing indexed pages.

    Since Google has the largest existing database, and webmasters prioritize getting indexed by Google, they tend to find new pages first.
    Jul 23 02:25 PM | 1 Like Like |Link to Comment
  • Amazon's Dispute With Hachette Group Will Have Negligible Impact On Its Business [View article]
    The dispute isn't over ebooks alone. Physical books are at stake as well. So a larger portion of their revenue is at direct risk than implied by the article.

    But the real danger for Amazon is that the dispute is forcing otherwise loyal customers to create accounts at other websites, even if it is just to purchase one book. That can easily snowball into multiple lost sales.

    For example, an Amazon Prime member decides to purchase "The Everything Store", $15.79, but doesn't want to wait three weeks for shipment. They decide to order from instead. The book is the same price, but they now owe shipping. Accustomed to free shipping, the customer decides to instead transfer an additional $45 in miscellaneous purchases from Amazon in order to meet the $50 shipping minimum on the Wal-mart order.

    See why Amazon is getting desperate?
    Jul 10 12:48 AM | 3 Likes Like |Link to Comment
  • Fire Phone plunges on Amazon's electronics bestseller list [View news story]
    Can we go ahead and delete paid comments.

    Nobody talks like this.
    Jul 2 01:35 PM | 6 Likes Like |Link to Comment
  • Why Amazon's Fire Phone Had To Be Expensive, And May Be Unsellable [View article]
    Sorry, that was a Seinfeld reference: he has no "hand" in the relationship. IE, no negotiating power.

    He certainly had a hand in the design and negotiation. But he doesn't have the leverage to disrupt this industry.

    Apple and Samsung DO have significant leverage against the wireless carriers. If the latest Iphone or Galaxy isn't available on T-mobile, for example, they know they will lose a lot of business. It doesn't need to be that extreme; if Apple demands another 5-10% in margin from a carrier that's billions in profits.

    So let's say you're a T-mobile executive and Bezos comes to you with this phone and he says he plans to give it away for free, and you would be the exclusive carrier. Your first thought isn't how well will this phone sell- your first thought is what will Apple and Samsung do in response? Maybe they'll do an exclusive deal with the competition, maybe they'll demand you discount their phone to the same price and eat the difference. Even if the Amazon phone is a smashing success, it won't make up for the sales you'll lose if there is any retaliation.

    So you tell him no dice. Not even interested.

    Amazon hears the same thing from all the other carriers, until they are left with just AT&T who will deal with them.

    AT&T is big enough that they know Apple and Samsung won't retaliate, but they also make a pretty penny selling marked up handsets through their own retail stores. So, they tell Amazon: we'll sell your phones. But we're planning on charging consumers $200 (with contract) in our stores, and you better not undercut us on price on your website.

    Then what choice does Bezos have? He needs a carrier.
    Jul 2 01:18 PM | 2 Likes Like |Link to Comment
  • Why Amazon's Fire Phone Had To Be Expensive, And May Be Unsellable [View article]
    Alternative possibility:

    Amazon wanted to subsidize, AT&T didn't want them to.

    Bezos has no hand in this relationship.
    Jul 1 05:57 PM | 1 Like Like |Link to Comment
  • Amazon unveils Fire phone [View news story]
    I don't think it was ready for release.

    Amazon has been plunking away at this project since 2009, endless revisions and staff turnover. They finally just ran out of money, realized Google's Project Tango (which is literally headed by the guy who invented the 3d effect) will make this obsolete in a year, and pushed out what they had.
    Jun 18 11:42 PM | Likes Like |Link to Comment