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Amazon Stock....discuss your thoughts on the future

Posted on 4/2/13 at 9:32 am
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 4/2/13 at 9:32 am
trading at 3600x earnings is insane....

but I see their potential as insane, first off, my fiance has a big amazon store and they changed the fee structure around recently and will be making tons more on sellers, their reach is widening as more and more of my friends and even my parents use it now! Never thought they would, its unreal to me and I see this stock being one of the greatest stories of the next 25 years as barrier of entry is going to be slim with basically google who could even compete......what do you guys believe about amazon and its future.
Posted by GenesChin
The Promise Land
Member since Feb 2012
37706 posts
Posted on 4/2/13 at 10:01 am to
Monopolies never last
Posted by notiger1997
Metairie
Member since May 2009
58122 posts
Posted on 4/2/13 at 10:01 am to
I don't have much to provide other than to note that according to a friend who works for them, they are giving up possible short term stock gains to invest heavily for the future.

I have read this same thing on one of the stock message boards about how they are investing heavily on new infastructure, people, businesses, etc and appear to be doing things the right way instead of just trying to see how hot they can make their stock right now.

Probably not worth much, but that is my vibe.

Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 4/2/13 at 10:15 am to
my fiance has her amazon store and basically amazon boosted sellers fees across the board, that should boost profit, and they are indeed investing heavy in cloud computing infrastructure amongst other things.....honestly I know 3600x earnings is scary, but I personally believe they will be one of the greatest growth stories of the next quarter century if not the greatest.

Just curious what others had to say abt it
Posted by lynxcat
Member since Jan 2008
24139 posts
Posted on 4/2/13 at 10:19 am to
quote:

I don't have much to provide other than to note that according to a friend who works for them, they are giving up possible short term stock gains to invest heavily for the future.

I have read this same thing on one of the stock message boards about how they are investing heavily on new infastructure, people, businesses, etc and appear to be doing things the right way instead of just trying to see how hot they can make their stock right now.

Probably not worth much, but that is my vibe.


The pilots that Amazon runs in the Seattle area show the company's spirit. It is doing some exciting things and will eventually roll them out to a broader market.
Posted by notiger1997
Metairie
Member since May 2009
58122 posts
Posted on 4/2/13 at 10:22 am to
quote:

It is doing some exciting things and will eventually roll them out to a broader market.


We were in Seattle visiting my friend and the grocery delivery service was pretty damn awesome. We placed an order at 7:00 at night for delivery the next door of all kinds of grocery items and they were sitting on the porch the next morning at 6:00am. Not sure how well this will work, but I have heard a few cities have this Amazon service now.

I know the Kindle lost a little of its shine when Walmart and Target booted them from their stores, but they have come back pretty well now with some great new products. Seem to be pushing hard into Asia and South America with Kindle sales.
Posted by Teddy Ruxpin
Member since Oct 2006
39576 posts
Posted on 4/2/13 at 11:11 am to
quote:

We were in Seattle visiting my friend and the grocery delivery service was pretty damn awesome. We placed an order at 7:00 at night for delivery the next door of all kinds of grocery items and they were sitting on the porch the next morning at 6:00am. Not sure how well this will work, but I have heard a few cities have this Amazon service now.


It pisses me off we don't have this in N.O. and worse that we probably won't for years.

Grocery shopping is so terrible and redundant(take off shelf, put in cart,take out of cart, put in bag, put back in cart, take out of cart, put in car, take out of car, take out of bag, put on shelf) and this fixes most of that. See, most steps disappear on the consumer side.
This post was edited on 4/2/13 at 11:14 am
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 4/2/13 at 11:34 am to
Amazon just does so much, they're incredible

Amazon prime I feel is the coolest thing on earth, everyone should pay $79/yr for the most amazing thing available on the web.....the tv shows,movies combined with free 2 days shipping and 1 free book a month is something walmart will bever be able to compete with

To me amazon is starting to look like a forever type stock, i dont see how anyone can come out and even attempt to compete, their moat is enormous
This post was edited on 4/2/13 at 11:40 am
Posted by rickgrimes
Member since Jan 2011
4180 posts
Posted on 4/2/13 at 11:50 am to
They are coming out with their own Kindle Smartphone in the near year or so. They just hired a top guy who ran the Windows Phone division away from Microsoft.
Posted by C
Houston
Member since Dec 2007
27822 posts
Posted on 4/2/13 at 12:25 pm to
quote:

I see their potential as insane


I somewhat agree. I rode this stock last year but sold a few weeks back as I think the risk is too high until profits start rolling in. As quickly as technology/internet sector companies can increase profit and revenue they can lose it just as fast.

I'm still in search of my next buying opportunity if anyone has any other suggestions... :-)
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 4/2/13 at 12:29 pm to
c, i had been preaching PM for the last few weeks as my biggest play and today it jumped $2 to $94....it is hands down combined with altria the best performing stock of all time....google it....emerging markets are smoking more than ever and phillip morris no longer has to deal with lawsuits in the united states since their spinoff a few years ago.....its up 300% in the last 5 years...from the spin off and about 48,000% since the time i was born....unreal what high dividends + dividend growth + low growth stocks do over time......remember slow and steady wins the race...

and best of all, as the dollars falls, phillip morris' profits increase....so its a play on a falling dollar too, and theyre just barely getting into china where 40% of the worlds smokers live, theyve never been in there

I do love amazon's long term growth especially reading stuff like this

Amazon's Retail Domination Strategy
This post was edited on 4/2/13 at 12:31 pm
Posted by C
Houston
Member since Dec 2007
27822 posts
Posted on 4/2/13 at 12:45 pm to
quote:

i had been preaching PM


my memory must be going because I didn't recall this or I thought you were talking about precious metals!

quote:

my biggest play and today it jumped $2 to $94....


Posted by Korkstand
Member since Nov 2003
28707 posts
Posted on 4/2/13 at 1:15 pm to
quote:

I think the risk is too high until profits start rolling in.

Amazon could, at any time, stop investing in growth and just start raking in profits. But they always break even because they spend every dollar they take in on new infrastructure. They are very transparent about the fact that they will continue to spend on growth for as long as they see the opportunity, and that's why investors like them.
quote:

As quickly as technology/internet sector companies can increase profit and revenue they can lose it just as fast.
Is Amazon really a tech company, though? Sure, they sell web services, and every sale they make is online, but they are a retail store. They sell physical products that people want and need, and they are even getting into groceries. They compete more with Walmart than they do with Google or Apple. And they are not turning profits because they are investing billions in distribution centers to make buying your groceries, electronics, and just about anything else almost as fast as driving to the store to buy it in person.

Amazon is where Walmart was 20 years ago, except Amazon is growing faster.
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 4/2/13 at 1:17 pm to
bingo korkstand! That is why i love it!! I think the future is limitless....people miss the fact that amazon is choosing not to take a profit bc THEY WOULD RATHER INVEST AND BUILD HUBS.....think what fedex did early on....hubs are the key to future growth
Posted by TJG210
New Orleans
Member since Aug 2006
28340 posts
Posted on 4/2/13 at 1:28 pm to
I absolutely love amazon and buy as much as possible from their site, however, in regards to their stocks ability to continue to rise I see it hinging on a few key things.

1. What does the future hold in regards to taxing internet purchases.
One of the big selling points of Amazon is that a majority of the buyers don't pay tax on their purchases. Even with Best Buy offering to match Amazon prices, on a $3000 TV I would still purchase from Amazon due to free shipping and no taxes which will save a few hundred bucks.

2. With the increased fee structure for sellers, how many will exit and simply sell their wares in another place?
Posted by C
Houston
Member since Dec 2007
27822 posts
Posted on 4/2/13 at 1:35 pm to
Damn your opinion has changed greatly in just one month:

LINK
This post was edited on 4/2/13 at 1:36 pm
Posted by ThaBigFella
baton rouge
Member since Apr 2006
2043 posts
Posted on 4/2/13 at 1:41 pm to
I mean it's just I quit looking at the pe of 3600 and started seeing why it was grossly valued...the no profit is bc they're abt to kick the entire retail sector America in the balls with the hubs they're adding in major cities.....imagine wanting anything and not having to wait and not having to deal with pesky sales people...this is coming damn soon and the reason there is no profit is bc of distribution center investment growth....didn't know that then but I read up 2 weeks ago and amazon seems mind boggling now....they're going to be undisputed king when they open the floodgates and stop investing In growth and just sit back and reap profits

Do you really think you will ever waste gas,time, energy to go to a brick and mortar shop when its cheaper online and its delivered in a few hrs? The only thing that keeps retail alive today is the "right now" factor.....AMAZON is investing like a mad man in the ability to bring that now factor to the web......that was why i didn't get the insane valuation, but now it seems like an epic monopoly is coming...read the link below

LINK

Will Amazon Take Over The World?

I admit i wasnt as educated on amazon a month ago and just valued is based on 3600x earnings P/E....no idea what was brewing like I do now
This post was edited on 4/2/13 at 1:52 pm
Posted by OnTheBrink
TN
Member since Mar 2012
5418 posts
Posted on 4/2/13 at 1:43 pm to
quote:

Damn your opinion has changed greatly in just one month


Posted by Duck
Member since Dec 2006
361 posts
Posted on 4/2/13 at 2:27 pm to
quote:

the reason there is no profit is bc of distribution center investment growth


You do realize that "investment growth" has NO EFFECT on the current periods EARNINGS. Just to clarify.
Posted by C
Houston
Member since Dec 2007
27822 posts
Posted on 4/2/13 at 2:48 pm to
quote:

no idea what was brewing like I do now


well just be cautious that everything has risk. They have already priced in a ton of growth for Amazon. As an example of comparing it to walmart in retail. Amazon is already valued half what walmart is, but it's revenue is only an eighth. So it still has a lot of ground to make up to be as large as walmart... and has to fight attempts by walmart and others on the way there. And I know this is very simplistic as Amazon is into publishing and servers that walmart isn't.
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