Because Who Needs Brick & Mortar, Anyway?

By Alex Silady

Fast shipping and comfortable shopping means that Amazon will likely surge during the holiday shopping season., Inc. (Nasdaq listing: AMZN)

Market cap: $107.91B

Average volume: 3.42M

P/E ratio: 2738.39

Rev. per Employee: $1.02M

EPS: 0.09

52 Week High: $264.11

52 Week Low: $166.97

Annual profit (last year): $631.0M

Net profit margin: 1.31%

The bubble of Internet stocks that burst at the beginning of the 2000s remains a cautionary tale. Yet retailer today posted its sole net loss of the past ten years, having ridden out the collapse of the dot-com craze and only grown stronger, with its prices having tripled since about three years ago and a projected earnings growth of 33% per year on average for the next five years. How is that possible? Unlike other companies offering “network solutions” and other intangibles, Amazon sells real products, many of them, and does it quickly and effectively.

Its recent dip was probably due to the threat to its Kindle e-readers by Apple’s iPad Mini tablet, but the Kindle constitutes less than 10 percent of Amazon’s sales and still is the best-selling e-book reader in the United States. Amazon’s great appeal is convenience, allowing people to buy any conceivable product from coffeemakers to corsets to chess sets without getting out of bed. That’s the sort of thing that will have staying power in any sort of economic turmoil… especially with the allure of free shipping!


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