Amazon is the new Walmart
businessinsider.com
Amazon is the new Walmart
1–10 of 21 posts
Re: Amazon is the new Walmart
#2What everybody can agree with is that AMZN stock price is massively overvalued.
Amazon is on low margin retail business. Amazons market cap is $475B. Assuming 10% ROI and 3% profit margin, Amazon must make $16 trillion in revenue some time in the future to justify the current price.
US retail sales are $5 trillion.
Total retail sales across the globe are $22 trillion.
Even if Amazon continues to grow at current pace, it runs out of markets to dominate before current stock price can be justified.
Bezos announced that he is unloading $1B per year. Smart man this Bezos guy.
Re: Amazon is the new Walmart
#3What everybody can agree with is that AMZN stock price is massively overvalued. Amazon is on low margin retail business. Amazons market cap is $475B. Assuming 10% ROI and 3% profit margin, Amazon must make $16 trillion in revenue some time in the future to justify the current price. US retail sales are $5 trillion. Total retail sales across the globe are $22 trillion. Even if Amazon continues to grow at current pace,…
True the stock is at an extreme price. But it's here to stay. Amazon has shown that they can expand their vision outside retail. I suspect that in time they will find a business model where their margins will be greater. It's a long shot but many people are hoping they find it. Hard to bet against Bezos.
Re: Amazon is the new Walmart
#4What everybody can agree with is that AMZN stock price is massively overvalued. Amazon is on low margin retail business. Amazons market cap is $475B. Assuming 10% ROI and 3% profit margin, Amazon must make $16 trillion in revenue some time in the future to justify the current price. US retail sales are $5 trillion. Total retail sales across the globe are $22 trillion. Even if Amazon continues to grow at current pace,…
Stocks all over the world are now valuated on the hope that someone else will pay more than you. Not on any intrinsic cash flow of the businesses. This is the new normal.
Re: Amazon is the new Walmart
#5What everybody can agree with is that AMZN stock price is massively overvalued. Amazon is on low margin retail business. Amazons market cap is $475B. Assuming 10% ROI and 3% profit margin, Amazon must make $16 trillion in revenue some time in the future to justify the current price. US retail sales are $5 trillion. Total retail sales across the globe are $22 trillion. Even if Amazon continues to grow at current pace,…
Amazon is also on the infrastructure platform business that powers various multi-billion business like Netflix and Dropbox.
Re: Amazon is the new Walmart
#6What everybody can agree with is that AMZN stock price is massively overvalued. Amazon is on low margin retail business. Amazons market cap is $475B. Assuming 10% ROI and 3% profit margin, Amazon must make $16 trillion in revenue some time in the future to justify the current price. US retail sales are $5 trillion. Total retail sales across the globe are $22 trillion. Even if Amazon continues to grow at current pace,…
If there's one thing that I've learned from living through the first internet bubble is that there's no such thing as a stock price that's "too high" or "overvalued". Some people will pay anything as long as they think they think they can sell it for a profit to the bigger fool.
Re: Amazon is the new Walmart
#7What everybody can agree with is that AMZN stock price is massively overvalued. Amazon is on low margin retail business. Amazons market cap is $475B. Assuming 10% ROI and 3% profit margin, Amazon must make $16 trillion in revenue some time in the future to justify the current price. US retail sales are $5 trillion. Total retail sales across the globe are $22 trillion. Even if Amazon continues to grow at current pace,…
Who is to say what's overvalued? A class-A share of BRK is 200x a single share of Amazon, last I checked.
Re: Amazon is the new Walmart
#8What everybody can agree with is that AMZN stock price is massively overvalued. Amazon is on low margin retail business. Amazons market cap is $475B. Assuming 10% ROI and 3% profit margin, Amazon must make $16 trillion in revenue some time in the future to justify the current price. US retail sales are $5 trillion. Total retail sales across the globe are $22 trillion. Even if Amazon continues to grow at current pace,…
I swear you could become a millionaire simply by investing according to the opposite of investment "insights" on Hacker News.
Re: Amazon is the new Walmart
#9What everybody can agree with is that AMZN stock price is massively overvalued. Amazon is on low margin retail business. Amazons market cap is $475B. Assuming 10% ROI and 3% profit margin, Amazon must make $16 trillion in revenue some time in the future to justify the current price. US retail sales are $5 trillion. Total retail sales across the globe are $22 trillion. Even if Amazon continues to grow at current pace,…
True the stock is at an extreme price. But it's here to stay. Amazon has shown that they can expand their vision outside retail. I suspect that in time they will find a business model where their margins will be greater. It's a long shot but many people are hoping they find it. Hard to bet against Bezos.
>hey will find a business model where their margins will be greater
That's not possible. Large scale retail can't be large margin business.
Innovation and productivity increases are directed towards profit making with small margins. Amazon is in good position of dominating markets with cost cutting and staying profitable with smaller margins than competitors.
The stock price is ridiculous.
Re: Amazon is the new Walmart
#10What everybody can agree with is that AMZN stock price is massively overvalued. Amazon is on low margin retail business. Amazons market cap is $475B. Assuming 10% ROI and 3% profit margin, Amazon must make $16 trillion in revenue some time in the future to justify the current price. US retail sales are $5 trillion. Total retail sales across the globe are $22 trillion. Even if Amazon continues to grow at current pace,…
Who is to say what's overvalued? A class-A share of BRK is 200x a single share of Amazon, last I checked.
Nominal value of a stock means nothing. It's not related to company performance or valuation.