Amazon.com takes the long view

[LazyBoy]

http://www.businessinsider.com/thank-you-amazon-2011-10

Amazon is investing (and hiring) while many other American corporations are milking incumbent businesses, under-investing in research and development, and hoarding cash. To the chagrin of some traders, Amazon is distinctly NOT "maximizing near-term profits" — it is sacrificing near-term profits. It is making less money now in the hopes of making more money and creating more value later. And it is ignoring the howls and screams of short-term traders who couldn't care less about Amazon's long-term prognosis, add nothing to the economy, and just want to make money now.

[lakedaemonian]

Re: Amazon.com takes the long view

Amazon has been taking the long view since day 1.

Although it almost came to their peril for a bit back in 1999-2002.

The amount of money they wasted scaling up was a bit like Iraq circa 2005.

Good, Cheap, Quick....pick 1

I remember being in an Amazon warehouse outside of Atlanta in 98 or 99...and there was a football field sized area filled with returned big screen televisions....not modern flatscrean plasma/lcd...the big pallet sized cabinet big screens.

What had happened was Amazon offered free delivery and no questions asked returns for a defined period.....to people jumped on the net an "borrowed" televisions for Thanksgiving, Xmas, and the SuperBowl and returned them no questions asked.

THAT was funny.

It will be interesting to see how they continue to ride the wave of retail commerce transitioning from physical retail to the net......they do have a very impressive logistical and distribution network.....but I'm keen to see how it handles the stress of volatile energy pricing trending higher.

While I haven't seen Jeff in well over a decade(I was a couple layers removed even when we were small) he is a good guy....and very, very smart.....he always had a near future vision of where the company could eventually go....and he surrounds himself with some sharp operators.

I rate Amazon's chances pretty good......but that share price is getting pretty crazy....even with the recent haircut.

[charliebrown]

Re: Amazon.com takes the long view

being a "guy" I hate going to the store and "shopping" (except Home Depot) Amazon has a good selection of many things. With high gas prices, and high sales tax and free shipping, I am turning more and more to picking Amazon instead of retail. Not all of their things are cheap. Some are quite expensive compared to Walmart or Target. I also have an Amazon credit card which gets me 3% off all my Amazon purchases, and 2% back on gas!

[flintlock]

Re: Amazon.com takes the long view

I am also a fan of amazon.com. Usually the best price, best selection, free shipping, no sales tax, good service . Whats not to like? I also use the amazon credit card and figure I'm saving a lot on gas not to mention the time I save. My wife was slow to adapt and spent a lot of her free time in stores. Now she gets it and is ordering more online. Its a huge time saver.

That said, I fear the stock is just too expensive. I like to buy stock in companies I beleive in. But no amazon stock for me.

[jk]

Re: Amazon.com takes the long view

one more paean to amazon: i often find the customer reviews very useful [though they must be read with a critical eye].