Market Currents
Amazon Prime may be wildly popular, but it's taking a toll on Amazon's (AMZN) profits, notes...
-
Thursday, January 12, 2012, 4:17 PM ETAmazon Prime may be wildly popular, but it's taking a toll on Amazon's (AMZN) profits, notes Jeff Bailey. Thanks in no small part to Prime, Amazon's net shipping costs grew to account for 4.9% of its net sales in the first 9 months of 2011, up from just 2.9% in 2007. Soaring shipping costs and capex helped compress Amazon's Q3 margins, and thereby contributed to its earnings miss.
Other date
TECH ETFs IN FOCUS
Latest Tech Articles
This news story has 1 comment:
But meanwhile, Fire is a loss leader itself and Prime isn't generating any profit due to high shipping costs (not to mention online content delivery) ??
And still has a P/E of 92.... truly amazing