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"We have recently made the business decision to not carry Amazon tablets and eReaders beyond our...

"We have recently made the business decision to not carry Amazon tablets and eReaders beyond our existing inventory and purchase commitments," reads an internal Wal-Mart (WMT) memo as it joins Target in no longer selling the Kindle products that edge Amazon (AMZN) further into their territory.
Comments (8)
  • Chuck
    , contributor
    Comments (102) | Send Message
     
    Netfilx killed Blockbuster's brick and mortar stores.
    Walmart killed the local merchants in the community.
    Amazon is now killing the last brick and mortar 'Castle' - Walmart in each community.
    Not today, Not tomorrow, but Amazon WILL kill or severly injure Walmart.
    20 Sep 2012, 12:21 PM Reply Like
  • Joe Eifrid
    , contributor
    Comments (336) | Send Message
     
    I disagree. AMZN may be the online champ but Walmart will remain king of brick and mortar. With AMZN having just a 1% operating margin they have little leeway for error. They are actually projected to show a loss for this quarter. How much longer is WallStreet going to let them use "we are building out our infrastructure" excuse for poor performance. The AMZN monster may turn out to be just another big dinosaur. Big sales little to no profits is just trading dollars in the end.

     

    Why the market sets such a low bar for such a high priced stock eludes me. APPL has something like a oprating margin of 36% and selling for a forward pe of 14. Then you have AMZN with operating margin of 1% selling with a forward PE of over 100. Where is the connection? If AAPL was selling at the same forward PE as AMZN it would be priced at...get this...$5764 per share. Amazing!!

     

    Hmmm...what would AMZN sell for at the same projected PE of AAPL? $31.71 Yikes!
    20 Sep 2012, 12:45 PM Reply Like
  • HarryWanger
    , contributor
    Comments (183) | Send Message
     
    Walmart makes money/profit
    Amazon brings in big revenue and turns no profit.
    You tell me which one will survive.
    20 Sep 2012, 01:44 PM Reply Like
  • chopchop0
    , contributor
    Comments (3219) | Send Message
     
    Exactly. Once AMZN's sales tax advantage dissipates and WMT ramps up its e-commerce and Pay with Cash services, I don't see WMT going away anytime soon.

     

    Also keep in mind that WMT can edge out even Amazon when it comes to getting products at the lowest possible cost

     

    http://huff.to/RdEofU

     

    Long WMT (cost-basis in the mid 40s)
    20 Sep 2012, 02:06 PM Reply Like
  • chopchop0
    , contributor
    Comments (3219) | Send Message
     
    Also on P/E and P/FCF, WMT is a no-brainer over AMZN.
    20 Sep 2012, 02:11 PM Reply Like
  • PaulTD
    , contributor
    Comments (1097) | Send Message
     
    "Then you have AMZN with operating margin of 1% selling with a
    forward PE of over 100."

     

    Thanks for that insight, I didn't realize that. It does seem sometimes that Amazon is practically giving things away, with free shipping no less, and I love it as a consumer and a taxpayer. I don't even feel the need to go look at things before purchasing any longer, because of Amazon's product reviews. I've only returned one item in the years I've been a customer.

     

    I would guess that they are rolling the dice on becoming the #1 retailer in the U.S.

     

    PaulTD.
    20 Sep 2012, 03:28 PM Reply Like
  • sheeple2012
    , contributor
    Comments (203) | Send Message
     
    not with diesel at $4.15/ gal and rising, unless they are working on a giant GPS guided slingshot?
    20 Sep 2012, 12:48 PM Reply Like
  • Mseekingalpha
    , contributor
    Comments (66) | Send Message
     
    But Natural Gas is selling at stations for and average $2.15.
    20 Sep 2012, 05:59 PM Reply Like
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