Seeking Alpha

215304

215304
Send Message
View as an RSS Feed
View 215304's Comments BY TICKER:
Latest  |  Highest rated
  • Can Wal-Mart Or Costco Successfully Compete With Amazon? [View article]
    Wal-Mart, Costco, and Target for that matter have all PROVED they can successfully compete with Amazon. All are making healthy profits sizable enough to even pay dividends. Amazon on the other hand is losing money, indicating that it is struggling to compete "successfully" with other retailers. A more accurate title for your article would have been "Can Amazon Successfully Compete with Wal-Mart or Costco".
    Sep 26 05:25 PM | 4 Likes Like |Link to Comment
  • 2 Reasons Why Amazon.com Will Again Miss Revenue Estimates [View article]
    BriansGirl, I've been in the "something smells" camp for quite some time. Amazon's price action makes no sense; that it makes new highs after 12 quarters in a row of deteriorating: earnings (culminating in losses), margins, revenue growth etc. which would obliterate any other mega cap stock is incredible. It seems that Amazon is the only mega cap stock in history that is given a bye on making money. Why must all other mega caps make money and show earnings growth and not Amazon? Why does Amazon continue to make new highs in the face of consistent deterioration of fundamentals? Perplexing, and smelly. The only thing similar was the internet bubble but those weren't mega cap companies, they were mostly start ups and small caps. Weird.
    Sep 24 01:41 PM | 2 Likes Like |Link to Comment
  • The True Objective Of The iPhone 5C [View article]
    Matthew, please see the article titled "10 New IOS 7 Features for the Enterprise" published on ZDNet today at the link below. I believe the answer to your question is yes.

    http://zd.net/18T2UsM
    Sep 12 10:13 AM | Likes Like |Link to Comment
  • The True Objective Of The iPhone 5C [View article]
    fatpitch2, At&t, TMobile, and Verizon have the same phones, Sprint has a different model. The chart at the link below spells it all out:

    http://bit.ly/Pq4s8W
    Sep 10 10:23 PM | Likes Like |Link to Comment
  • The True Objective Of The iPhone 5C [View article]
    Paulo, I think the 5C will gain market share in the US, Europe, Japan, and China for those folks that $100 is a big deal. They can now get a "new" iPhone for what used to get you last year's model. Those who can afford it will jump on the 5S bandwagon to have the latest and greatest. For people in the developing world who can't afford either the 5C or 5S the iPhone 4S and iPhone 4 will be the entry level iPhone. That segment is where Android has a huge majority of the market, but I don't think Apple cares much about market share in that segment-there's not much money there. Cheap Android phones will always win on the dirt cheap end of the market-Apple will never build a "dirt cheap" product....I hope.
    Sep 10 09:17 PM | 2 Likes Like |Link to Comment
  • Just How Reasonable Is A Free Amazon Smartphone? Apple Provides The Answer [View article]
    What distinguishes Amazon from all other large cap companies is a driving force to sell a lot of anything without any concern what so ever for making money. Yet investors don't seem to care. Imagine the market reaction if WalMart, Target, or Apple for that matter announced that they were going to go all out to improve gross revenue and would reduce all their prices so that their companies would just break even for the fiscal year. This would never happen of course because WalMart,Target, and Apple are successful, well run companies that produce healthy profits and believe profits are important. Yet Amazon seems to scorn profits and actually loses money and comes up with new hair brained schemes to lose even more money and the market reaction is to drive the stock price to new all time highs. After all, analysts will tell you that Amazon's big profits are only two years away (please repeat the "big profits are only two years away" mantra in 2014, 2015, 2016, etc in perpetuity).
    Sep 8 12:30 PM | 5 Likes Like |Link to Comment
  • Samsung Galaxy Gear May Change The Apple iPhone Release Story [View article]
    "Apple investors need to see how the new device is reviewed this week. If it does well, comparisons between the iPhone 5S and the Galaxy S4 - which were inevitable anyway - are sure to contain mention of the expanded capabilities of the Samsung product family."

    The vast majority of reviews have been scathing. So much for the "expanded capabilities of the Samsung product family". End of story.
    Sep 5 12:51 PM | 8 Likes Like |Link to Comment
  • Amazon's Numbers Continue To Worsen [View article]
    "The bull case on Amazon is that they can make profits any time they want to. They just don't want to right now. Do you buy that? What's to stop Amazon from restoring profit margins, at will, to the levels of 2 years ago? "

    Night Heron, I don't think Amazon can just turn on the profits at will. Amazon has a business model that is great at generating revenue, but lousy at generating profits. It's lifeblood in all it's business lines is low pricing, if it tries to raise prices it's competitors in retail, AWS, etc. will quickly grab market share. There there's it's rising costs of doing business. Amazon has added thousands of employees in the last few years, employees cost money, lots of money. And warehouses cost a lot of money as do the costs of delivery, especially same day delivery. The result of all of this is Amazon is locked in an extremely low margin overall business that will never have high margins. It's telling that old school brick and mortar retailers like WalMart, Target, and Costco all have HIGHER margins and profits than Amazon. Also, bear in mind that even when Amazon was able to generate annual profits, it never generated huge profits. In it's entire history Amazon has made approximately $1.8 billion in profits, Apple made 4 times as much in it's latest QUARTER.
    Aug 17 11:05 AM | Likes Like |Link to Comment
  • Amazon: A Good Long-Term Play [View article]
    Buyanhold2012, you're right, and take those analyst earnings estimates of $2.81 for 2014 with a grain of salt. In 2010 analysts estimated Amazon would earn over $5 in 2012. 2012 came and went and instead of earning over $5 Amazon lost money for the year. For the last several years analysts have consistently provided wildly optimistic forward estimates for Amazon only to bring them down quarter after quarter. I don't believe for a minute that Amazon will earn $2.81 in 2014 just like I didn't believe the $5 number for 2012.
    Aug 14 11:06 AM | 3 Likes Like |Link to Comment
  • Amazon: Is There A Top In Sight? [View article]
    Tippydog, well said.
    Aug 13 05:57 PM | 1 Like Like |Link to Comment
  • Bezos Saves The News... Or Vice Versa? [View article]
    "The company's stock is up over 17,000% since it first went public in 1997, and has climbed nearly 300% over the last five years alone, outpacing the NASDAQ by a multiple of 5. Investors are cautiously optimistic about the rare alchemy of the Amazon brand, and are willing to look past the astronomical metrics by which conventional companies are valued - at least for now. At some point all of this investment will need to start generating economic value, of both the balance sheet and cash flow varieties."

    Rather than "cautiously optmistic", I think "wildly optimistic" is more accurate. In the last three years Amazon has doubled in the face of significant declines in earnings (resulting in actual losses), margins, and revenue growth. That Amazon achieved new highs in the face of this does not indicate caution on the part of Amazon long investors, it indicates an incredibly high level of optimism. A cautious reaction would have resulted in no price change in the stock or a mild pull back in the stock price, not new highs.
    Aug 7 11:10 AM | 2 Likes Like |Link to Comment
  • Amazon's Numbers Continue To Worsen [View article]
    " I saw a statistic once - not sure if it's true - that showed that Apple makes more profit in one quarter than Amazon has managed to make during its entire existence)."

    Tom, Amazon has made a little less than $1.8 billion in it's entire existence. Apple, in it's worst quarters, makes about 4 times as much as Amazon has made in it's history.
    Aug 3 10:57 AM | 3 Likes Like |Link to Comment
  • Amazon's Numbers Continue To Worsen [View article]
    Davel, you're right, and you're right to be confused because there's a lot about Amazon that just doesn't make sense. Also, Amazon doesn't just compete with online retailers, it also competes with brick and mortar and many of those companies are price matching Amazon in store as well as on their web sites. Many Amazon lovers think Amazon can "turn on the spigot" and start turning huge profits whenever they want to but that's baloney. Amazon is not making money because they can't. If Amazon raises prices it's competitors will go for Amazon's throat and grab market share. I believe Amazon's business model works great for increasing revenues (and even revenue growth is slowing) but is flawed regarding profits. It's easy to sell a lot of anything if you don't care about turning a profit.
    Aug 1 09:18 PM | 2 Likes Like |Link to Comment
  • Bear Of The Day: Amazon [View article]
    "However, analysts still see strong growth in 2013. Earnings are expected to jump 227%."

    This was a joke, right. Like a 227% increase in earnings is supposed to be impressive when that means going from a loss of $.09 in 2012 to a gain of pennies in 2013, maybe. The way things are going, it is very possible that Amazon will actually lose money again in 2013 as earnings estimates are brought down every quarter. Losses in the current quarter will mean Amazon lost money in three of it's previous four quarters.
    Aug 1 06:34 PM | 3 Likes Like |Link to Comment
  • Amazon's Numbers Continue To Worsen [View article]
    Bill, let's face it, whether you use price to sales, price to earnings, or probably any other metric that has ever been used, AMZN stock valuation is not going to compute, it just doesn't make sense. In the history of Wall St. there has never been a company with a valuation above $50 billion that has recorded 12 quarters in a row of declining year over year earnings culminating in actual losses, declining margins, and declining revenue growth and in that same 12 quarter period saw its stock price consistently go higher ultimately achieving new highs. If it were a small cap startup, maybe you could see something similar, but for a company with a market cap over $100 billion-I don't get it. Why should Amazon get a total pass on earnings when Wall St. demands that ALL other large caps be profitable and punishes them severely for even minor earnings misses-look at what happened to Apple. If WalMart could continue to be profitable during it's high growth phase why can't Amazon? Why does the market insist that all other large caps show consistent earnings growth or it punishes the hell out of them while telling Amazon that profits don't matter-it can show consistent earnings declines and as a matter of fact can even show losses with impunity? For a company this large it's crazy to say that earnings don't matter, it's just crazy. Sorry for the rant.
    Aug 1 05:30 PM | 8 Likes Like |Link to Comment
COMMENTS STATS
588 Comments
1,237 Likes