> their competition isn't going away any time soon.
That's where the investors disagree with you. Amazon is trying to do to big box stores what big box stores did to mom and pop stores. I buy everything from $2 batteries to $5000 electronics on Amazon. Only reason I go to local stores is groceries or emergency goods (meds, last-minute-gifts). Nobody knows what will happen to Office Depot or Kohls in 20 years but unless Amazon royally screws something up, I am certain they will remain significant for decades to come.
So you think Amazon will drive everyone serious enough out of business and then be able to raise prices? Personally, I doubt it. They will not surrender that easily
I love Amazon by the way, and do a lot of my shopping there. But, IMO, its hard for investors at these levels to see a decent return.
This is a misconception. Amazon aren't making any profits because they are pumping all of their margins into new facilities and other infrastructure investments. If they stopped expanding and just squeezed profit out of their existing business, then they would be very profitable.
After Walmart destroyed the mom and pop store they didn't incrase prices, and Amazon probably won't either. Particularly since Amazon are an online retailer, and it is very easy for customers to shop around.
Amazon aren't making any profits because they are pumping all of their margins into new facilities and other infrastructure investments. If they stopped expanding and just squeezed profit out of their existing business, then they would be very profitable.
Not sure if they can ever stop, maybe slow down but they will still need to buy companies. And, Amazon needs to make $5+ Billion in profit with this valuation, something missing
After Walmart destroyed the mom and pop store they didn't incrase prices
That's where the investors disagree with you. Amazon is trying to do to big box stores what big box stores did to mom and pop stores. I buy everything from $2 batteries to $5000 electronics on Amazon. Only reason I go to local stores is groceries or emergency goods (meds, last-minute-gifts). Nobody knows what will happen to Office Depot or Kohls in 20 years but unless Amazon royally screws something up, I am certain they will remain significant for decades to come.