- Jun 2014
- Cleveland, Ohio
https://www.washingtonpost.com/news/business/wp/2016/10/27/amazons-profit-triples-to-252-million-but-thats-not-enough-for-wall-street/Amazon.com rang up a $252 million profit in the third quarter, more than three times the $79 million it reported a year ago, as it cashed in on blistering growth in its cloud computing division and booming sales in its flagship e-commerce business.
The company on Thursday reported that its revenue soared to $32.7 billion, a 29 percent increase from the same period a year earlier. Still, the report managed to put the brakes on long hot streak for Amazon’s stock, which had soared more than 20 percent so far this year. Analysts had been expecting greater than the 52 cents per share earnings that the company posted, and investors sent the stock down about 5 percent in after-hours trading.
The contours of Amazon’s earnings report looked similar to the patterns that have been seen in recent quarters. Amazon Web Services, its cloud business, did the heavy lifting in terms of delivering profitability. That division had an operating income of $861 million on net sales of $3.2 billion. Meanwhile, the North America business — which includes the steady stream of brown boxes the retailer sends to your doorstep — saw operating income of $255 million on a sales base nearly six times as large.
The international business recorded an operating loss of $541 million.
Amazon is out to become the Google of retail, and I think they'll succeed. They will kill bricks and mortar superstores, which is fine by me. Older, disabled people like me cannot spend 2 - 3 hours wandering a football field-sized store and then stand on line for 30 minutes to check out.
So, my advice is (1) begin to dive deep on Amazon, as it is highly kinetic and maximizing value there will remain a challenge and (2) buy Amazon stock.
But there are other challenges, obviously. Amazon has a horrendous reputation as an employer.
Worse than Wal-Mart: Amazon?s sick brutality and secret history of ruthlessly intimidating workers - Salon.com
Amazon: Devastating expose accuses internet retailer of oppressive and callous attitude to staff | The Independent
Brutal Conditions In Amazon's Warehouses - Business Insider
These are Americans we are discussing. I just don't see how Amazon can distribute across the US from warehouses in Canada or Mexico; the import issues would be too difficult. Amazon will build in states with right to work laws, large unemployment rates and poor track records on such things as workers' como/workplace safety law enforcement.
This should not be allowed to go forward without challenge. Amazon can profit over a bricks and mortar store already, because of the many efficiencies of e-commerce. They do not need to enslave American workers to wring out yet another penny in profit.
Amazon will also change American aviation law.
This is most likely going to be all positive change, except that as the drones become more commonplace, this will affect trucking, ground delivery services like Fed Ex, and it will affect the consumer. This service intends you to have what you ordered 30 minutes later or less. That's going to cause massive changes in the "retail therapy" experience for most Americans. I don't think we can predict EVERY ripple from this will also be positive, and it bears watching.
We control the importation of foreign made goods via a network of Customs Agents at ports and airports around the country. But what if shipping containers start to disappear? How do we control importing then?
More importantly, although I oppose a trade war, I do support a ban on the importation of any goods made with slave or child labor, or worst of all, the labor of enslaved children. This si the game, set, match point for International Human Rights, IMO, and if we lose this as so much as an option, then how long before the standards of labor in Bangladesh are also the standards in Topeka?
We need our state and federal lawmakers to address these concerns, but Amazon is a corporation. Anyone who buys as little as one share is entitled to attend shareholders' meetings and to speak up at them
Amazon is sold on the NASDAQ as AMZN, at about $750/share. That is extremely high and I would expect it to split soon.
AMZN Stock Quote - Amazon.com Inc. Stock Price Today (AMZN:NASDAQ) - MarketWatchAmazon.com Inc.
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Amazon's CEO is Jeff Bezos, a very dynamic man almost impervious to shareholder reaction because he holds 18% of Amazon's outstanding stock.
Amazon's retail revolution may not be Jeff Bezos' biggest accomplishment
We need to start talking about what his vision actually entails, because whatever it is, he is likely to make it happen. The market and political power of Amazon in days to come will be astronomical, unless something completely unexpected occurs to derail the company.
Amazon is in danger of becoming a lumbering conglomerate ? Quartz
If what Bezos wants is not what YOU want for this country, you had best start to get organized. This is a link to his most recent annual shareholder letter:
It's mostly puffery, but you can see the directions he intends to pursue. It's extremely well-written, geared towards people who read on a 6th grade level. Only brilliant people can do this. People of only average intelligence try to use incomprehensible language to convey complex ideas, because they do not actually understand them.
Amazon is a game changer, and that will become more and more true as the months and years ahead unfold.