# Amazon is a good example of what's wrong with the stock market



## BillS (May 30, 2011)

http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=2266665

Net income was $724 million in the first quarter, or $1.48 per diluted share, compared with net income of $513 million, or $1.07 per diluted share, in first quarter 2016.

Net sales increased 23% to $35.7 billion in the first quarter, compared with $29.1 billion in first quarter 2016.

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The media goes bonkers about the sales and revenue but you can't even find how much they actually made in most news stories. Amazon's net profit margin is just 2% of sales. It's market capitalization is $476 billion. It's stock price is just over $1000. * The earnings per share is $1.48 for a share that costs $1000. *

Buying Amazon stock is like buying that $1000 vending machine that yields $0.49 of net income every month.


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## a_decent_criminal (Jul 15, 2017)

I like very few US stocks but Amazon is one of the ones I do. 

Amazon isn't done eating US retail. I think they'll eventually put a giant like wal-mart out of business. In the future, you'll be mom&pop, or you'll be amazon.

The kind of slow-motion apocalypse I see means there will still be things in 30 years like the internet and the stock market. If the FAA isn't around, Amazon will be able to deliver ammo to your deep woods shack by drone.


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## hiwall (Jun 15, 2012)

> Buying Amazon stock is like buying that $1000 vending machine that yields $0.49 of net income every month.


Or like buying a $1000 piece of paper that is worth $1200 in a month or two.
It is a fact that many stocks are still going up. And while they are going up you can make money with them. 
Many people (in the know) say that stocks are now way over priced. And that is likely true which seems to mean the market will have a correction at some point. In the mean time stocks can still be an excellent money maker if you are lucky enough to pick the winners. Just like always when in the market.


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## Meerkat (May 31, 2011)

BillS said:


> http://phx.corporate-ir.net/phoenix.zhtml?c=176060&p=irol-newsArticle&ID=2266665
> 
> Net income was $724 million in the first quarter, or $1.48 per diluted share, compared with net income of $513 million, or $1.07 per diluted share, in first quarter 2016.
> 
> ...


 Billionaire soon to be trillionaire if not already Amazons and Paypal owner Bezos just bought up Whole Foods. He is monopolizing the markets and it will be good fro awhile then it will be not so good. It is beginning to be slaves and masters. Once they rule over our food and resources they can name their price without worry of competition.:dunno:


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## Grimm (Sep 5, 2012)

Meerkat said:


> Billionaire soon to be trillionaire if not already Amazons and Paypal owner Bezos just bought up Whole Foods. He is monopolizing the markets and it will be good fro awhile then it will be not so good. It is beginning to be slaves and masters. Once they rule over our food and resources they can name their price without worry of competition.:dunno:


If you do a bit of research into Amazon buying Whole Foods you'd learn that they want to compete with Walmart in the grocery market. The official statement was they want to bring more organic and specialty foods to the lower income families in America at affordable prices.

It also seems odd that you believe they want to control pricing when there are laws in place to prevent monopolies (even Disney doesn't own all the 'disney' named theme parks in the world). I see more smaller chain stores opening up like Aldi's and Sprouts all over!


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## biobacon (Aug 20, 2012)

I cant prove this yet But I'm hearing they cut a deal with the USPS to pay about $1.50 per parcel to ship. Then they charge 3.99 to 4.99 for the service. Government monopoly anyone? Before they get around to taking out Walmart the feds will go standard oil on their butts. Then the big wigs reap all the rewards as they sell out right before it happens. My thinking anyway.


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## biobacon (Aug 20, 2012)

Ok looks like I misunderstood what I heard. The USPS gives Amazon a subsidy of about $1.46 per parcel. That's still a lot.

https://www.wsj.com/articles/why-the-post-office-gives-amazon-special-delivery-1499987531


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## Meerkat (May 31, 2011)

biobacon said:


> I cant prove this yet But I'm hearing they cut a deal with the USPS to pay about $1.50 per parcel to ship. Then they charge 3.99 to 4.99 for the service. Government monopoly anyone? Before they get around to taking out Walmart the feds will go standard oil on their butts. Then the big wigs reap all the rewards as they sell out right before it happens. My thinking anyway.







Above link gives his opinion of why this is not a good thing for the people.

Although the messenger me ala Meerkat has a popularity problem because of politics etc, the message is still has some merit to it.


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## Meerkat (May 31, 2011)

Bezos is a AI aka artificial intelligence radical and plans to have robots in his warehouses and stores. So goodbye jobs for humans,he also wants to plant the heavens,Mars,moon. 

We are already too smart for our britches and this will not work out for the serfs too good in the long run. He is connected to Zuckerberg, Pay Pals Thiel 'spl'.


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## Grimm (Sep 5, 2012)

biobacon said:


> Ok looks like I misunderstood what I heard. The USPS gives Amazon a subsidy of about $1.46 per parcel. That's still a lot.
> 
> https://www.wsj.com/articles/why-the-post-office-gives-amazon-special-delivery-1499987531


I get a shipping discount from USPS when I sell on ebay. If fact all sellers on ebay get a shipping discount when you pay for shipping through their site.


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## BillS (May 30, 2011)

Amazon isn't going to take down Wal-Mart. According to the Census Bureau, online sales are only 8.5% of all sales.

https://www.census.gov/retail/mrts/www/data/pdf/ec_current.pdf

The media blames Amazon and online sales whenever a brick and mortar chain goes out of business. The bottom line is that sales are dropping. People just don't have the money that they used to have.


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## BillS (May 30, 2011)

hiwall said:


> Or like buying a $1000 piece of paper that is worth $1200 in a month or two.
> It is a fact that many stocks are still going up. And while they are going up you can make money with them.
> Many people (in the know) say that stocks are now way over priced. And that is likely true which seems to mean the market will have a correction at some point. In the mean time stocks can still be an excellent money maker if you are lucky enough to pick the winners. Just like always when in the market.


It's a good investment if you get out at the right time. From my understanding, the stock price-earnings ratio is higher now that it was in 1929.

It used to be that people bought stocks in profitable companies that paid dividends. Fewer companies pay dividends than they used to. You're forced to make your money based on the price of the stock going up.

You also have a lot of companies borrowing cheap money from the big banks simply to buy back their own stock and increase their earnings per share numbers. Any CEO involved with that obviously cares more about keeping their job than doing what's best for the company.


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## Meerkat (May 31, 2011)

Grimm said:


> I get a shipping discount from USPS when I sell on ebay. If fact all sellers on ebay get a shipping discount when you pay for shipping through their site.


 This could be good ' an organic chicken in every pot '.


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## BillS (May 30, 2011)

You have to watch what you buy on Amazon. Check the reviews. They sell a lot of stuff that isn't carried in other stores. In other words, Amazon sells some stuff because nobody else will. You also need to know if you're buying from Amazon or a Marketplace seller. If you have problems with a Marketplace seller you should contact Amazon immediately.


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## CrackbottomLouis (May 20, 2012)

I sure wish I had bought a chunk of Amazon when it was $17 a share. My bol would be amazing if I had


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## hiwall (Jun 15, 2012)

USPS gives everyone a price cut depending on volume...just like most businesses do for their customers.



> "Nerds forecast a 3% a year S&P 500 returns for a decade. Quants say we're in the top few percentiles of historical valuation across every asset class (except volatility). The S&P 500 is up roughly 10% this year. Which means we've realized roughly 3yrs of gains in the first 6mths of 2017."


Trading in the stock market has ALWAYS been risky but people have always traded stocks because they all had hopes of big returns. ALWAYS some win and some lose.


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## a_decent_criminal (Jul 15, 2017)

BillS said:


> Amazon isn't going to take down Wal-Mart. According to the Census Bureau, online sales are only 8.5% of all sales.


What was it in '99?


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## tsrwivey (Dec 31, 2010)

Amazon is making Walmart better. Look at Walmart now offering pick up service. Also, Walmart's shipping is now competitive with Amazon's both in price & speed. Walmart needed Amazon to make it step up its game.


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## cqp33 (Apr 2, 2012)

tsrwivey said:


> Amazon is making Walmart better. Look at Walmart now offering pick up service. Also, Walmart's shipping is now competitive with Amazon's both in price & speed. Walmart needed Amazon to make it step up its game.


Good ole competition! Now if they could just open more than one register at a time, if they are doing pickup does the one register clerk (who is 90) have to bring it to the curb so everyone has to go to self checkout where there are 3 clerks working doing....NOTHING!!! Oh there was a ? in there! OOPS :surrender:


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## CrackbottomLouis (May 20, 2012)

The difference between walmart and amazon is at amazon I at least have the opportunity to buy better quality goods. With Walmart Im stuck with the same old Ive come to expect. And the reviews on amazon are much easier to discern which are trustworthy or not.


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## TheLazyL (Jun 5, 2012)

Stock. A worthless piece of paper that you purchase with the hopes of selling it for more then what you paid for it.


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## hiwall (Jun 15, 2012)

Thank goodness for Walmart! At our new location we are just over 60 miles to a city and that is only 10,000 population. So we use Walmart free shipping to have most groceries and other items delivered for free. Obviously not everything can be delivered and Walmart is not our only place to buy but it is the one we get most stuff shipped from. Walmart has the same stuff as most other retailers but as always its "Buyer Beware".


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## angie_nrs (Jul 26, 2017)

One thing you have to be careful about with Walmart.com is that many of their online prices are much more than what you would pay for the same item in the store. So, make sure you know your prices before you buy. The shipping might be free.....but the increased online prices may be the reason why. Because, we all know.......nothin's free!


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## hiwall (Jun 15, 2012)

angie_nrs said:


> One thing you have to be careful about with Walmart.com is that many of their online prices are much more than what you would pay for the same item in the store. So, make sure you know your prices before you buy. The shipping might be free.....but the increased online prices may be the reason why. Because, we all know.......nothin's free!


They usually quote the in-store price near the online price. They are not trying to hide anything and it is obvious that the shipping costs them money. For me it saves me a very long trip to the store.


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