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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

#51

Post by tyre »

legitster wrote: post #45
Aurornis wrote: post #31

Earlier quoted context omitted.

> Amazon's core business does not make sense. Despite being so massive, their retail operation makes almost no money. Net profit margins for retail are only around 3% across the industry. Amazon isn't actually doing anything unusual in that regard. Retail is just a very low profit margin business whether it's physical or online. These numbers are always confusing to those of us in the tech world where SaaS net profit…

This is correct, but it doesn't explain why Amazon would have a 2x market cap over Walmart when they both roughly make the same revenue. You have to believe that Amazon is poised for much higher growth than they are to justify their current stock price.

These are different businesses. Walmart has a massive retail footprint, where Amazon does not.

Amazon’s huge 3p seller network means it can offer advertising as a revenue stream in a way Walmart can’t compete with.

Re: Warren Buffett dumps $1.7B of Amazon stock

#52

Post by password54321 »

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 a marketplace for cheap sometimes harmful chinese knockoffs. Amazon doesn't even check what is being sold. I only order directly from places I trust. http://nbcnews.com/business/recall/cheap-chinese-faucets-dan...

Re: Warren Buffett dumps $1.7B of Amazon stock

#54

Post by nikkev »

legitster wrote: post #45
Aurornis wrote: post #31

Earlier quoted context omitted.

> Amazon's core business does not make sense. Despite being so massive, their retail operation makes almost no money. Net profit margins for retail are only around 3% across the industry. Amazon isn't actually doing anything unusual in that regard. Retail is just a very low profit margin business whether it's physical or online. These numbers are always confusing to those of us in the tech world where SaaS net profit…

This is correct, but it doesn't explain why Amazon would have a 2x market cap over Walmart when they both roughly make the same revenue. You have to believe that Amazon is poised for much higher growth than they are to justify their current stock price.

Their business models are increasingly converging with both generative revenue through seller fees, subscriptions, and advertising. Amazon is ahead in most of these areas and also has the higher margin revenue from AWS. Amazon also has a large base of prime subscribers they can sell incremental services to.

Re: Warren Buffett dumps $1.7B of Amazon stock

#55

Post by jcheng »

legitster wrote: post #45
Aurornis wrote: post #31

Earlier quoted context omitted.

> Amazon's core business does not make sense. Despite being so massive, their retail operation makes almost no money. Net profit margins for retail are only around 3% across the industry. Amazon isn't actually doing anything unusual in that regard. Retail is just a very low profit margin business whether it's physical or online. These numbers are always confusing to those of us in the tech world where SaaS net profit…

This is correct, but it doesn't explain why Amazon would have a 2x market cap over Walmart when they both roughly make the same revenue. You have to believe that Amazon is poised for much higher growth than they are to justify their current stock price.

The revenue curves do indeed look a bit different:

https://www.macrotrends.net/stocks/stock-comparison?s=revenu...

Even more so if you compare EBITDA:

https://www.macrotrends.net/stocks/stock-comparison?s=ebitda...

Re: Warren Buffett dumps $1.7B of Amazon stock

#56

Post by forinti »

scottious wrote: post #47
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/

I half expected to see an "under construction" gif and a "powered by GeoCities" tag at the bottom

It's definitely missing a website hits counter.

Re: Warren Buffett dumps $1.7B of Amazon stock

#57

Post by HanClinto »

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…

Home Assistant and other open-source projects seem like they may be the only way that we get consumer-friendly devices.

https://github.blog/open-source/maintainers/the-local-first-...

Re: Warren Buffett dumps $1.7B of Amazon stock

#58

Post by wifipunk »

rvz wrote: post #37

Berkshire, Not Buffet. Also, why would anyone want to work at Amazon at this point? One of the worst companies to join with the worst margins out of the big tech companies. [0] https://news.ycombinator.com/item?id=46809296

Desperation and relatively high compensation.

Every friend I've ever had work for them was burnt out but stayed because they were too burnt out to look for a new job

Re: Warren Buffett dumps $1.7B of Amazon stock

#59

Post by [deleted] »

legitster wrote: post #45
Aurornis wrote: post #31

Earlier quoted context omitted.

> Amazon's core business does not make sense. Despite being so massive, their retail operation makes almost no money. Net profit margins for retail are only around 3% across the industry. Amazon isn't actually doing anything unusual in that regard. Retail is just a very low profit margin business whether it's physical or online. These numbers are always confusing to those of us in the tech world where SaaS net profit…

This is correct, but it doesn't explain why Amazon would have a 2x market cap over Walmart when they both roughly make the same revenue. You have to believe that Amazon is poised for much higher growth than they are to justify their current stock price.

[deleted]

Re: Warren Buffett dumps $1.7B of Amazon stock

#60

Post by mullingitover »

Aurornis wrote: post #31
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…

> Amazon's core business does not make sense. Despite being so massive, their retail operation makes almost no money. Net profit margins for retail are only around 3% across the industry. Amazon isn't actually doing anything unusual in that regard. Retail is just a very low profit margin business whether it's physical or online. These numbers are always confusing to those of us in the tech world where SaaS net profit…

Walmart doesn’t have a cloud computing side business that’s wildly profitable.
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