This is good?
A quarterly income of $4.23, on an investment of $1660. This is good?. I think I'll hold on to my Building Society shares a bit longer,
Amazon, a cloud giant with a supplementary online souk, saw a rare drop in profits in its latest financial results, published Thursday. For its 2019 third quarter [PDF], ended September 30: Revenues of $70bn were up 24 per cent from the year-ago quarter and ahead of $68bn analyst predictions. Net income was $2.1bn, down 27 …
The store is a very low margin business, and there are no barriers to entry for competitors both big (Walmart) and small/specialized (Newegg) so they will never be able to increase those margins. There isn't enough growth possible in retail to come close to justifying their valuation. AWS is their only hope, unless they enter a new line of business where they can make billions in profit every quarter. Those are rather few in number, however.
Amazon and Tesla are only possible because of extremely low interest rates. Effectively, to get a return people have to invest in businesses because leaving the money in the bank results in interest lower than inflation.
If US debt funding ever starts to falter and interest rates rise, it will be an interesting time for future economists.
Amazon and Tesla are very different companies and are in very different industries. Amazon is primarily in retail and the cloud. Retail does not attract vulture capital as the profits are modest at best but a well run retailer will tend to make consistent money, key well run. Badly run retailers go out of business which is generally why retailers die. The cloud does attract the vultures but Amazon got into out of their own needs so AWS has mostly been funded internally. Much of Amazon's sales are cash and carry or subscriptions with very little credit extended by Amazon. Thus interest rates have an indirect effect on Amazon by affecting the available cash of their customers. As a broad range retailer/cloud provider Amazon is not as susceptible to market forces as many niche retailers/providers are.
Tesla sells automobiles. Most cars are financed/leased which means the cost of the monthly payment is tied very directly to interest rates. What Tesla's exposure compared to other car manufacturers I do not know. Also, EVs are still more of a niche product which makes Tesla more susceptible to market forces.
If they're fulfilled by Amazon, it's supposed to be in Amazon's warehouse ready to send alongside Amazon's own stuff. If somehow they have to wait days before telling you it's dispatched, it's in another warehouse of theirs on the other side of the continent or it's not really in their warehouse at all.
Got to keep the Prime racket going though.
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