And why can’t that retail stock going bankrupt be Amazon itself? Your argument is that Amazon can survice on zero or negative net income and FCF but other retailers can’t because they are being undercut. Umm, OK.

I’m curious how wide Amazon’s moat really is. I’m a faithful Amazon user, but I’m not so sure there is anything unique about keeping me there. I expect Amazon is going to encourage people like Jet, who are designed to undercut the undercutter. Just seems like Amazon’s strength is in it’s diversity of products, but people thought Walmart would keep growing forever as well. I’m going to look into the stock after earnings season though

I imagine as soon as someone offers a lower price, people leave. Nobody really cares about anything other than price.

so grocery margins are less than 5%, meaning they aint profitable. it makes sense for amazon to come in since no one really cares about their earnings. their profits will remain crap, but their rev/share will expand causing their share price to expand, now i would never short amazon, cuz they got a good story, but i dont invest cuz they got a good story, i invest cuz they got good FCF, sum earnings growth, and not a promise of monetization in a year or 2.

as a consumer i love it. i use amazon for a dirty price check cuz i know their shit is cheap. the reviews are a bonus. most importantly, i like to see what everyone is buying. simply cuz i dun like to think about waht kind of computer i need. or which battery charger is better. i want the one that everyone wants. if everyone owns it then i dun mind owning it as well. mindless consumerism. but strenght in numbers. kinda like etf investing.

bottom line though. i applaud amazon. they can be profitable, they juss choose to dump everything on research or lower costs to gain market share. every company should push for gaining market share and squashing competition (amazon basically vowed to bring the iphone down even though they got the shitty amazon phone). every investor should push for profits (and keep managment in check for their investor’s self-interest). and every consumer should push for better value (either through lower cost or better utility). haha. love the conflicts, but it is waht it is.

how the cycle repeats itself. the difference between business rseults and investment results due to valuation.

i’ve also read a few articles highlighting that wal mart is indeed cheaper than amazon in terms of dollar cost. but when time of consumer is factored in that amazon may indeed be the better value for some.

anyways quite interesting that amazon is now valued more than wmt. even though wmt’s ebitda is about 7x amazon’s and revenue is about 5x.

Not too shabby…eh?

That technology segment is doing well. I’m still not sure about the retail stuff. But I bet you are happy ha ha. Hasn’t the stock doubled this year?

I don’t know that buying fruits and vegetables on the internet will ever threaten traditional grocers anywhere near the point of extinction. I don’t want to buy produce without looking at and physically handling the stuff.

it’s funny. my family had a really busy/hard couple of weeks in the past month and we got stuff from grocery gateway (delivery service from Longos in the Toronto area) and the produce was far better than what you’d see in the store. it’s like they’re picking the produce from the bins in the back before they get manhandled 100x as it would if it was on the shelf. i think what you would receive via delivery will be better than what your get from your retail experience, based on my grocery gateway experience at least. the meat was better too in that it had BB dates that were maybe 3-4 days longer than they would be in store. no shelf time = maximum freshness.