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Amazon has a lot of upside potential but COGS is something like 80% of their revenue. Minus COGS their annual revenue will be about $20b with about a 5%-10% pro
by rdlecler1 9y ago
Amazon has a lot of upside potential but COGS is something like 80% of their revenue. Minus COGS their annual revenue will be about $20b with about a 5%-10% profit margin. Sure, they can increase revenue by 5x - 10x. Minus COGS that would bring them to parity with Google but with 25% - 50% of Google’s margins. As much as I like Amazon as a company it’s hard for me to square this with their valuation.