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I don't see any evidence for your premise that their stock price is high because of international expansion.
by smackfu 14y ago
I don't see any evidence for your premise that their stock price is high because of international expansion.
- DigitalTurk 14y agoWell, it's a conjecture. The stock price is sky-high and this should mean that investors expect Amazon to grow much, much larger. International expansion seems to be the best way to go about that. For the long-term survival of Amazon it might also be a good idea to try to dominate everywhere. In every market that Amazon doesn't serve, a competitor will take its place. There's a danger that in the long run such a competitor will become large and efficient enough to compete with Amazon in Japan, UK, Europe, or even the US.
- smackfu 14y agoI just have doubts that moving your low-margin mail-order business into other markets is really a good strategy. It's much more efficient to move into high-margin businesses in your strong markets.