Author Topic: AMZN - Amazon.com Inc.  (Read 633892 times)

dwy000

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Re: AMZN - Amazon.com Inc.
« Reply #450 on: June 04, 2014, 03:45:03 PM »
And before I get called out on it, yes, I know they don't "manufacture" hardware.  I meant that they are designing and creating hardware and other proprietary items instead of reselling purchased items.


fareastwarriors

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Re: AMZN - Amazon.com Inc.
« Reply #451 on: June 04, 2014, 03:52:33 PM »

Fat Pitch

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Re: AMZN - Amazon.com Inc.
« Reply #452 on: June 04, 2014, 04:39:28 PM »
Fat pitch - I agree that IF they can get back to opex levels from 10 years ago they will be very cash flow positive.  But what I don't get is why the belief that the expense levels of 10 years ago (when growth was much faster than today) should be considered the "normal" level.  What is the evidence that today's expense levels are not the "new normal"?

Well I'm not 100% sure if they will revert back. Amazon has entered new markets since 2006 so there are obviously high start up costs and investments  being made by them. There's evidence they are extracting more from each dollar of revenue since we are witnessing gross margins creeping up over the years.

There seems to be a suggestion that they are stuffing growth expenses into the operating expense line.  What's the basis for this?  I can't find anything in the 10Ks or Q's.  And top line growth is somewhat slower than it was 5-10 yrs ago.  Also, this is a bit of a different beast than in 06.  They now manufacture hardware and their fastest growing business (AWS) is a high opex operation which would suggest the higher expense levels are less than temporary.

The only basis we got is did Amazon become less efficient at shipping out orders? I seriously doubt it, if anything they gotten more efficient since economies of scale is at play here. So with that logic the increase in these cost centers are probably related to AWS and their other business lines.

Again, IF they can revert to historic levels this can be very profitable but trends and evidence suggest it's headed in the other direction.  Curious as to why the belief this can and will reverse sharply?

The only way we will know if we can get our hands on their line item detail of their financials. You think they'll mail it over if we give IR a call?  :P
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Spekulatius

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Re: AMZN - Amazon.com Inc.
« Reply #453 on: June 04, 2014, 08:33:58 PM »
I am not sure that the increases in cost reverse themselves either:
FullFillment: Prime and other initiatives lead to smaller order size, which will have higher fullfillment costs. Unless they are willing to give up on this business, this  will likely stay high and probably rise more.

Some of their service/cloud business probably has higher gross margins but also higher expenses than the core retail business, I think the change in AMZN business mix very likely is responsible for the changes in the income statement ratios.

I see no evidence that anything reverts back to where it was a couple if years ago.
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JAllen

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Re: AMZN - Amazon.com Inc.
« Reply #454 on: June 10, 2014, 10:31:57 PM »

http://recode.net/2014/06/10/with-amazon-in-mind-ibm-begins-giving-retail-clients-same-day-delivery-tool/


ďA lot of our clients are really looking at how do we more effectively compete against Amazon,Ē

Evidence of AMZN's competitive advantages? 


Now, I wonder if partnering with just hundreds of these shops is going to get people to switch from AMZN who has something like 20M products...  It is non-trivial, to say the least to offer that many products.

Palantir

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Re: AMZN - Amazon.com Inc.
« Reply #455 on: June 11, 2014, 06:42:23 AM »
What a pain, this keeps rising, was hoping to add to my position.
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fareastwarriors

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Re: AMZN - Amazon.com Inc.
« Reply #456 on: June 12, 2014, 08:15:51 AM »
Prime Music coming soon

http://online.wsj.com/articles/amazon-launches-music-streaming-service-1402571241

Quote
Amazon.com Inc. AMZN -1.55% on Thursday rolled out a music-streaming service, with some limitations.
 
The service, available only to members of Amazon's $99-per-year Prime membership program in the U.S., offers about one million tracks from thousands of albums, the company said. But it doesn't include songs from Vivendi SA VIV.FR -0.08% 's Universal Music Group, the largest label, and tracks from Warner Music Group and Sony Corp. 6758.TO +0.24% will generally be more than six months old.

ajc

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Re: AMZN - Amazon.com Inc.
« Reply #457 on: June 15, 2014, 02:12:03 PM »

Amazonís 3D smartphone is a gimmickóbut it could present a huge retail opportunity


Itís rumored that Amazon will launch its own 3D smartphone on June 18.
While it may be compelling, a sexy 3D feature wonít catapult Amazon into the lead of the cut-throat smartphone category.
If this were true, the EVO 3D, introduced two years ago by HTC and the W960, introduced by Samsung four years ago, would have been top sellers rather than niche products.
However, a smartphone that renders 3D images does present an internet retailing opportunity for Amazon. It would be useful to Amazon in selling tangible consumer merchandise, just like Amazonís Kindle Fire tablet was designed to improve Amazonís merchandizing of ebooks and video streaming products.

3D images would give consumers a multidimensional mobile view of the products that they might buy on amazon.com, which would likely increase the conversion rates of users viewing product listings into purchases.
Typically, a listing without an image wonít convert as well as one with an image, and a listing with an optimized image will convert even better. The multiple cameras reported to be in the Amazon smartphone could be applied to creating rich 3D images that would improve conversion rates even further.
Data arenít available on conversion rates attributable to 3D mobile imaging but there are many case studies of increased e-commerce conversion rates from 360-degree rotatable web images. Adobeís Darin Archer, head of Product Strategy for eCommerce told Quartz...


http://qz.com/221076/amazons-3d-smartphone-is-a-gimmick-but-it-could-present-a-huge-retail-opportunity/


« Last Edit: June 15, 2014, 02:13:36 PM by ajc »

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Liberty

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Re: AMZN - Amazon.com Inc.
« Reply #459 on: June 18, 2014, 10:59:58 AM »
« Last Edit: June 18, 2014, 12:02:09 PM by Liberty »
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