Seeking Alpha
  • StockPandit
    AMZN Amazon quickly grabbed the No. 2 spot in the tablet market with its $199 Kindle Fire.
    3/26/12
    Reply (11)
    • OneLongTrade: Loses money on each one it sells, but it sure is selling a lot. Wonder how much revenue is coming from books/apps. Is it enough?
      3/26/12
    • StockPandit: The idea is to provide an eco-system so that AMAZON can upsell most of the items - groceries, electronics, household through Kindle Fire
      3/26/12
    • OneLongTrade: Right, understand the idea perfectly, just wonder how effective it has been. Prior to the Fire, their margins were already declining.
      3/26/12
    • StockPandit: It will not change overnight or in a quarter.If you look at AAPL,they built iOS ecosystem &making just $1 billion in a quarter from iTunes
      3/26/12
    • OneLongTrade: Which is peanuts compared to the revenue they make from the handsets themselves. I see your point, but is AMZN's valuation warranted?
      3/26/12
    • StockPandit: From online retail perspective,AMZN has less competition&this ecosystem supposed to accelerate overall growth&minimize adv/marketing costs.
      3/26/12
    • StockPandit: From online retail perspective,AMZN has less competition&this ecosystem supposed to accelerate overall growth&minimize adv/marketing costs.
      3/26/12
    • StockPandit: Other retailers spend more money on adv/marking.AMZN investment is Kindle.If initial version success,can make money frm next release as well
      3/26/12
    • OneLongTrade: Perhaps, but I don't see why investors want to bank on its potential revenue stream when you have AAPL doing much of the same, with a lower
      3/26/12
    • OneLongTrade: valuation. Whereas AMZN currently has declining margins, AAPL has increasing. If p/e is anything, AMZN should trade at a more modest level.
      3/26/12
    • OneLongTrade: Full disclosure, I'm not short AMZN right now,but I was late last year. I don't think their model is sustainable, but time will tell I guess
      3/26/12