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Amazon (AMZN) was as secretive as ever during its Q3 call (webcast/slides). No comment on which...

Amazon (AMZN) was as secretive as ever during its Q3 call (webcast/slides). No comment on which European markets are weak, and no comment on the impact of sales taxes (it now collects on over 50% of sales). Amazon also dodged an amusing question about whether it's made a "philosophical" decision to keep running near breakeven. But it did note paid unit growth was 39% Y/Y, and active customer accounts rose by 8M Q/Q to 188M. Gross margin was 25.2%, down a bit from Q2's 9-year high of 26.1%. Shares -0.9% AH - like Apple, some bad news was priced in. (more)
Comments (3)
  • chopchop0
    , contributor
    Comments (3137) | Send Message
     
    Makes me think of that einhorn comment....

     

    "It's very hard to compete against someone who doesn't feel compelled to make a profit"
    25 Oct 2012, 08:49 PM Reply Like
  • TheAxe
    , contributor
    Comments (132) | Send Message
     
    Can they lever the huge advantage they have in internet retail. Or is AMZN just a super=Walmart...
    26 Oct 2012, 07:10 AM Reply Like
  • jstratt
    , contributor
    Comments (2215) | Send Message
     
    AMZN is crazy!

     

    On one hand they have never really made a reasonable return.

     

    On the other hand they are rapidly converting retail to the internet. At 63 billion revenue projected for 2012 and 80 Billion for 2013 AMZN is going to have lots of impact in the next year.

     

    At 107 Billion market cap for last years 631 Million profit and the resulting 280 PE it isnt cheap.

     

    AMZN appears to me to have retailers in the same position today that our textile industry was in 20 years ago.

     

    If I were to value AMZN I would suggest that 38 Billion market cap would be a fair price. That is roughly granting them the ability to increase profit 4 times to 2.5 billion multiplied by a normal PE ratio.

     

    I am not an investor in AMZN but following AMZN results will tell you a lot about the rest of the economy over the next year.
    27 Oct 2012, 02:21 PM Reply Like
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