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Warren Buffett dumps $1.7B of Amazon stock

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Re: Warren Buffett dumps $1.7B of Amazon stock

#131

Post by autoexec »

monero-xmr wrote: post #30
legitster wrote: post #23

Amazon's core business does not make sense. Despite being so massive, their retail operation makes almost no money. There is little market share left for them to win, the best they can do to grow is shave expenses. AWS has been their real money maker, but also the explosion of AI and server farms has worked against them in threes ways: there is much more competition on infrastructure, the costs to run infrastructure…

They could just increase prices. They deliver fast (often same day) and always accept my returns. Add 5% to prices, pure margin.

They already do. About half the time the prices I see on amazon are higher than buying directly from the manufacturer or from another online store. One example I saw recently was this lego set (https://www.amazon.com/LEGO-Penguins-Love-Building-Set/dp/B0...) which cost over $50 on amazon, I checked lego.com and it was $15.00! (they included it free with a large purchase too!). It's $20 here (https://bricksandminifigsontario.com/products/40886-penguins...)

Re: Warren Buffett dumps $1.7B of Amazon stock

#132

Post by TitaRusell »

iririririr wrote: post #109
never_inline wrote: post #80

Earlier quoted context omitted.

Amazon has been quite useful for me as a single bachelor living in an Indian metropolitan city. 1. I get very useful items at very good prices, many of which I would have to wander the city for hours to find, or couldnt find at all: - Eg: I got a pair of adjustable dumbbells at 2. Amazon Fresh is usually cheaper for groceries and maintain consistent quality compared to local supermarkets. I will also avoid the need t…

amz is beholden to cheap products and labor. you have both in india. elsewhere it's awful, for the exact same features you describe. they even bought a premium supermarket chain so their produce stop being returned in the US.

Yeah this is something really beautiful about India: life is cheap and there are tons of desperate people who will kill themselves for you.

In the Netherlands you'll be waiting an hour for your meal to be delivered by a bored teenager on an ebike. And you're going to be grateful.

Re: Warren Buffett dumps $1.7B of Amazon stock

#133

Post by tracerbulletx »

legitster wrote: post #23

Amazon's core business does not make sense. Despite being so massive, their retail operation makes almost no money. There is little market share left for them to win, the best they can do to grow is shave expenses. AWS has been their real money maker, but also the explosion of AI and server farms has worked against them in threes ways: there is much more competition on infrastructure, the costs to run infrastructure…

Trying to make every business have software margins is going to destroy society.

Re: Warren Buffett dumps $1.7B of Amazon stock

#135

Post by tim333 »

JTbane wrote: post #98
semiquaver wrote: post #15

Berkshire Hathaway has my favorite website (or, WEB page, as they style it) of any big company: https://www.berkshirehathaway.com/

My god, static text with no graphics!? In 2026!?

They have a long tradition of keeping it simple going back long before the web. The annual reports had no pictures or puffery unlike most companies, though much better writing.

Re: Warren Buffett dumps $1.7B of Amazon stock

#136

Post by tim333 »

kristianp wrote: post #122

Looks like Berkeshire Hathaway is one way to invest in US shares ex-AI. Except for their smallish holding in Google, they now don't own the big AI spenders, whose shares have risen so much in the past year. I guess they don't see value in Amazon shares any more. AI spend will probably hit their aws profits. Note that the listing of shares they own doesn't include the companies that are subsidiaries. Like Geico and ot…

In the dot com boom and crash Berkshire stock moved opposite to the nasdaq hitting its year low on the same day the nasdaq peaked.

Re: Warren Buffett dumps $1.7B of Amazon stock

#137

Post by whatever1 »

pgwhalen wrote: post #124
MrDarcy wrote: post #85

Earlier quoted context omitted.

They have 86.8 B cash but are going to spend 200 B this year.

What is that spend compared against though? They already spend hundreds of billions of on various things in a year, but what is the marginal spend? When you present these numbers alongside each other, you imply that they will go from making ~$20b/quarter to losing ~$30b/quarter, which is not plausible to me.

You can have a profitable business but be cash flow negative. Similar to how someone can have assets but have no cash.

Yes 100B in capex is unprecedented for Amazon (let alone 200). Last time they peaked Capex was at ~60B in 2021 when they decided to double their supply chain network.

So the marginal capex on gpus is likely 70-80% of their total capex

Re: Warren Buffett dumps $1.7B of Amazon stock

#138

Post by amatecha »

drstewart wrote: post #7
xvxvx wrote: post #2

Maybe the novelty of Amazon has worn off. I occasionally purchase from their UK site, and it’s filled with tricks to get me to sign up for Prime upon checkout. Really horrible workflow and design decisions, cheapening the experience. I now see similar changes to the US version: ‘you saved $15 in shipping by being a Prime member with this purchase’ and ‘last year you made 211 sustainable product purchases’. Guys, quit…

Amazon has become AliExpress at this point, so I just skip the middleman half the time

That's what I call it, "American AliExpress" lol

Re: Warren Buffett dumps $1.7B of Amazon stock

#139

Post by kjellsbells »

I have a simple lagging indicator for the US economy, and it's this: when the ads you see focus on price not features, and especially of food, the economy is in a hole and no amount of government sunshine (from either party) persuades me otherwise. In those times, head towards essentials. Food, consumer staples, healthcare. Stay out of tech.

We have ads now for discounts at Taco Bell. Not even Pizza Hut. Taco Bell!

The US economy for regular people is not good.

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