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God, investors are idiotic. Amazon spends money to upgrade its infrastructure, stock price plunges 12 percent. Rational!

by beedogs 15y ago

jrockway 15y ago
They should do more for less, like magically store all 8 billion items they have in stock in the back of my car or something. Warehouses housing wares. How extravagant. Where's the innovation. (And to answer my sarcastic comment, the innovation is "order from your suppliers and have them ship directly to the customer, then you don't need warehouses". But the reason people pay Amazon's prices is because the item shows up at their house the same day they buy it, which means that 1990s mail-order model doesn't work anymore. Investors shouldn't be allowed to invest until they've purchased at least one product from Amazon.)
- awj 15y ago
  > Investors shouldn't be allowed to invest until they've purchased at least one product from Amazon. Seriously. My wife gets Amazon Prime for free through school. Within the first month I was looking for the best opportunity to buy stock. The service is quite literally amazing, and handing it out free to students is just damn genius. That's just one small thing on top of all the other things they do really well at.
  - Game_Ender 15y ago
    I will second this. The free student prime has moved purchase of Amazon Prime from the "it seems cool but not worth category" to "must have" for me. You get things that you would normally have to run all over town to get with minimal effort. It's a huge time saver.
    - vidarh 15y ago
      I've found myself ordering tiny stuff like a single pack of caffeine pills (we're talking 24 pills here, not exactly bulk buying) rather than walking 10 minutes to the nearest pharmacy... It's scary.
  - bostonvaulter2 15y ago
    I wish they had Amazon Prime in Hawaii, although I guess I have more pressing concerns to complain about.
usaar333 15y ago
In all fairness, they did miss on revenue as well (albeit not by much). Given how highly valued Amazon is (something like 5x Walmart on a price/revs basis), exceeding estimates is expected. That's not to say they aren't an amazing company, but their valuation is extremely high.
- cma 15y ago
  >exceeding estimates is expected If this is a cold hard face, wouldn't someone factor that in when making the "estimate" or does "estimate" now have a new meaning?
  - usaar333 15y ago
    analyst estimates differ from the effective market estimate
nandemo 15y ago
Stock prices adjust to news. If this plunge was higher than expected, then it's news, and the stock price falls. It doesn't necessarily imply the investors disapprove of Amazon's management.

God, investors are idiotic. Amazon spends money to upgrade its infrastructure, stock price plunges 12 percent. Rational!

by beedogs 15y ago

God, investors are idiotic. Amazon spends money to upgrade its infrastructure, stock price plunges 12 percent. Rational!

jrockway 15y ago

They should do more for less, like magically store all 8 billion items they have in stock in the back of my car or something. Warehouses housing wares. How extravagant. Where's the innovation. (And to answer my sarcastic comment, the innovation is "order from your suppliers and have them ship directly to the customer, then you don't need warehouses". But the reason people pay Amazon's prices is because the item shows up at their house the same day they buy it, which means that 1990s mail-order model doesn't work anymore. Investors shouldn't be allowed to invest until they've purchased at least one product from Amazon.)

awj 15y ago
> Investors shouldn't be allowed to invest until they've purchased at least one product from Amazon. Seriously. My wife gets Amazon Prime for free through school. Within the first month I was looking for the best opportunity to buy stock. The service is quite literally amazing, and handing it out free to students is just damn genius. That's just one small thing on top of all the other things they do really well at.
- Game_Ender 15y ago
  I will second this. The free student prime has moved purchase of Amazon Prime from the "it seems cool but not worth category" to "must have" for me. You get things that you would normally have to run all over town to get with minimal effort. It's a huge time saver.
  - vidarh 15y ago
    I've found myself ordering tiny stuff like a single pack of caffeine pills (we're talking 24 pills here, not exactly bulk buying) rather than walking 10 minutes to the nearest pharmacy... It's scary.
- bostonvaulter2 15y ago
  I wish they had Amazon Prime in Hawaii, although I guess I have more pressing concerns to complain about.

usaar333 15y ago

In all fairness, they did miss on revenue as well (albeit not by much). Given how highly valued Amazon is (something like 5x Walmart on a price/revs basis), exceeding estimates is expected. That's not to say they aren't an amazing company, but their valuation is extremely high.

cma 15y ago
>exceeding estimates is expected If this is a cold hard face, wouldn't someone factor that in when making the "estimate" or does "estimate" now have a new meaning?
- usaar333 15y ago
  analyst estimates differ from the effective market estimate

nandemo 15y ago

Stock prices adjust to news. If this plunge was higher than expected, then it's news, and the stock price falls. It doesn't necessarily imply the investors disapprove of Amazon's management.