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> Their retail/ecommerce revenue alone is around $100B. Overall, they are going to top $150B this year. Without AWS which is their primary profit machine right
by fweespeech 9y ago
> Their retail/ecommerce revenue alone is around $100B. Overall, they are going to top $150B this year. Without AWS which is their primary profit machine right now, they are still at $135B+ in revenue. Don't you think if they wanted to, they'd be able to eek out a few billion in profit from that remaining $100B+ in revenue if they decided to go that way? That would get their PE below 100.
Amazon can't actually compete with us on price without selling below their costs. That is the reason we are still alive despite Amazon moving into our market. They can't raise prices _at all_.
Their ability to do so _entirely depends_ on them becoming more efficient. I suspect they can't become substantially more efficient on the retail side than they already are.
- skinnymuch 9y agoCan they really not? I guess it really comes down to if people will shop at Amazon much less or at all if they raise prices by a few percent or don't decrease prices over the next few years (just an example). Both achieving the same thing. Not saying for all products, just some potentially. I personally don't think they'd take that much of a hit. But i could be convinced by otherwise.