borisb

Will Amazon Grow Up to Be Wal-Mart?

2contango, Amazon's main competitive advantage isn't sales tax. The company has
spent $billions since 1995 to develope the franchise.

Amazon has grown the electronics and general merchandise category >30% per year and it will
be interesting to see how this does in the next few years. The breakout depends on this. Kindle/Kindle Store are small revenue contributors but the gross profit opportunity might be seriously better if the e-reader holds on to some of the first-ish mover advange.

GameStop: Margin of Safety Is Attractive at Current Prices

GME makes little on world of warcraft or other online games.

Will Apple Blow Past Netflix, Amazon and Microsoft With A Fox Deal?

Netflix household penetration in northern california
is nearly 20% and still expanding. this implyies a still growing US opportunity of 22 million households. Now that BBO is retreating....it appears that netflix will go back up to the >80% marketshare it usually has had for several years. at this time NFLX management thinks the opportunity might be 30 million-ish households. With netflix subs around 7.5 million seems like there is room for plenty of upticks in sub count. Also based on Apple's conflict of interest due to hardware sales, it seems Netflix has the Hollywood Studio best interest at heart.

Will Apple Blow Past Netflix, Amazon and Microsoft With A Fox Deal?

Netflix is morphing into something very big.

Amazon: Time to Take Profits - Barron's

amazon is the lowest cost producer so there is only so much the competition will be able to mark down prices.

Is Amazon Attempting a Buyout of Netflix? (NFLX, AMZN)

My first analyst suggestion for the site, and this is above average. Amazon.com may have offerred $42 a share or $2.2 Billion for Netflix. I think this is fairly low for Amazon and here is way. In 2006 Consenus among 16 analyst is that Netflix will bulk up towards $1 Billion revenue with a robust growth rate. $1 Billion in sales is about $450-$500 million in pre tax gross profits. Thus Amazon would be paying roughly 4.5x 2006 pregross profits. Amazon.com stock itself sells for 7.0x consensus 2006 pre gross profits. So this would be an accretive aqusition from the get go, plus increase Amazon.com customer base by nearly 5 million, plus Amazon.com would be able to offer next day fulfillment on $2-$4 Billion of its annual light media sales, without extra shipping fees, assuming the sales tax issue is resolved for the best. Amazon.com decided to stop being stingy and offer $42 only because it is now clear, that from July 1 2005 - March 31 2006 netflix will pickup nealy 2 million subscribers while Blockbuster Online will not grow its subscribers at all, stunted and out of cash at 1 million subscribers.