Amazon Posts 20% Revenue Growth, Stock Drops - InformationWeek

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Amazon Posts 20% Revenue Growth, Stock Drops
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Charlie Babcock
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Charlie Babcock,
User Rank: Author
2/3/2014 | 4:37:13 PM
Amazon plan? Generate cash to support the capital building.....
Kmarko: "It continues to generate enough cash to support the capital building plan." Yes, it does, but barely. What happens if there's not sufficient growth to suppot the building already under way? The discussion of a hike in Prime subscriptions generates more cash flow, also commits the company to a year of free deliveries at a modest price. I sort of see what they're doing; wary that it's always going to work.
Charlie Babcock
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Charlie Babcock,
User Rank: Author
2/3/2014 | 4:32:00 PM
Amazon overly ambitious?
The thing that makes me wary is that Amazon.com is trying to do so many things at once. It's building out fulfillment centers. It wants to do same day deliveris and deliveries of fresh groceries in those big green trucks marked "Fresh." That's a huge amount of distribution infrastructure they're trying to build out. They are trying to be in the consumer hardware space with the Kindle and Kindle Fire tablets. They want to compete with Netflix in movie and video downloads, while hosting Netflix. They want to produce video content. They're trying to capture the consumer in multiple ways. It may work but it may also be overly ambitious.
Lorna Garey
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Lorna Garey,
User Rank: Author
2/3/2014 | 3:59:46 PM
Call me a socialist ...
But since when is 20% revenue growth with a doubling of net income cause for disappointment among investors? That's a sign just how crazy expectations have gotten. At some point, what if Amazon decided not to raise Prime prices and instead to hold steady and even plow more profits back into R&D, a la Apple? Would the stock be lowered to junk status?
David F. Carr
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David F. Carr,
User Rank: Author
1/31/2014 | 6:37:21 PM
AWS just a blip?
Great that it looks like Amazon boosted its cloud services revenue, but is it really material to the health of the business? Is it ever likely to be?


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