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Except now they have profits and they had losses in the late 90s. They are still expanding to new countries. Last year, for instance, they opened amazon.es and
by muyuu 14y ago
Except now they have profits and they had losses in the late 90s.
They are still expanding to new countries. Last year, for instance, they opened amazon.es and amazon.com.br which are significant markets.
I don't see what's the point in comparing revenue to profit ratios in wildly different sectors.
- darrhiggs 14y agoIs amazon.es for latin america? AFAIK .es is España, and although it's ≈45MM, it's hardly a massive market WRT latin america.
- danieldisu 14y agosignificant != massive
- lemma 14y agoNo, it looks like it's targeted to Spain (which would make sense as far as logistics beacause they already have sites for France, Germany, Italy, and the UK).
- muyuu 14y agoLatin America is not a single market for retail. Spain is the biggest single Spanish-speaking market for consumer products, although Mexico is growing fast.
- simonh 14y ago>I don't see what's the point in comparing revenue to profit ratios in wildly different sectors. That's fair, I don't buy the comparisons of Amazon with Google, Microsoft, etc either. It's also true that P/E ration can be misleading, for example even a healthy company might book a loss, or small profit from time to time for all sorts of reasons. The problem with Amazon is that their current share price is around $250. For that to make sense, you need to believe that their earnings will rise so that this becomes a good deal. To achieve a P/E ratio of say 20 (still too high for a retailer), their earnings would need to go up about 150x. How are Amazon going to become hundreds of times more profitable than they are now?