74% of Amazon's profit come from web services, not ecommerce. Comparing them to retailers is not accurate. Also they represent 38% of all US ecommerce and that segment continues to grow as brick and mortar shrink. Also growing sales direct from third part sellers means less inventory and handling. Because of their volume, they can increase their retail price by 5 cents and profits go up by billions. There is a good reason all major institutions hold Amazon as their number one or top 5 position. Recent stock price weakness caused by traders exiting or reducing retail exposure is an opportunity to increase positions. Institutional investors are not selling. Amazon's Beta is only 1.15 so its not a good stock for trading, but an excellent stock for owning.
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- DaveLewis·05-23Powerful web services, not just ecommerce!LikeReport
- NoraPoe·05-23Thanks for sharing this interesting info about Amazon.LikeReport