treerter t1_j6j0a2q wrote on January 30, 2023 at 5:59 PM

Amazon has always tried to minimize its earnings, while focussing on growth. Therefore the earnings are permanently low and the p/e is high.

MAC3113 OP t1_j6j10da wrote on January 30, 2023 at 6:03 PM

Makes sense when you describe it as such. Still leaves lingering questions about how much of the failures in growth is compensated by the beast AWS is.

Aaco0638 t1_j6j5p1v wrote on January 30, 2023 at 6:32 PM

Most growth is fueled by aws however I wouldn’t call it failed growth just yet. Acquisitions such as mgm, one medical and irobot will take years to actually manifest itself and expanding their fulfillment network is never a bad choice (i mean just look at their buy with prime program they started, all due to their ever expanding network).

MAC3113 OP t1_j6j6gem wrote on January 30, 2023 at 6:37 PM

failed growth isn't the right way to describe it. The trade-off in between earnings now and projected growth, where projected growth's (ie their startups) losses are compensated by their current money printing machine, AWS.

Humble_Umpire_8341 t1_j6jclkb wrote on January 30, 2023 at 7:15 PM

100% correct. They’re leveraging the money printer that is AWS to invest in and buy other things. Some investments will take years to grow as stated.

IMO, they’re getting to be more similar to GE in the 90s, a position I maintain and others in these threads tend to staunchly disagree with. However, they’re seemingly in all consumer categories now (health, food, consumables, IT, entertainment, etc). Just ensures that the “growth” never ends.

Bezos is on the record as saying Amazon is getting too big and companies that too big tend to fail for one reason or another. At some point a Amazon CEO or then it’s will elect to sell of or divide the company as a means of streamlining the business. Just MO - don’t down vote me to much

MAC3113 OP t1_j6jeib8 wrote on January 30, 2023 at 7:27 PM

Right, once they get too big, anti-trust could become a pertinent issue.

Humble_Umpire_8341 t1_j6jp2lx wrote on January 30, 2023 at 8:32 PM

Not even anti trust, just the over dependence on AWS to pay for everything, eventually shareholders will get upset and demand a better performing stock and management might be stuck with little options but to break things up.