Amazon is not a retailer anymore, it is the largest behavioral marketing company in the world.
As I write this, our recent stock performance has been positive, but we constantly remind ourselves of an important point – as I frequently quote famed investor Benjamin Graham in our employee all-hands meetings – “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” We don’t celebrate a 10% increase in the stock price like we celebrate excellent customer experience. We aren’t 10% smarter when that happens and conversely aren’t 10% dumber when the stock goes the other way. We want to be weighed, and we’re always working to build a heavier company.
If I were Amazon I’d be selling the hardware, not the content.
Shaun Rein, the managing director of China Market Research Group, speaking to Bloomberg.
It’s interesting just how poorly Amazon is doing in China. This can be seen two ways: either they’re being out-Amazon’d there by Alibaba and will never be able to crack the country (just as eBay couldn’t). Or the massive upside if they are able to crack China eventually.
But, as Rein’s quote indicates, Amazon may have to flip its content-driven model. It’s hard to subsidize hardware with content sales when people refuse to pay for content.
So don’t buy our stock — instead buy our products and enjoy our investments.
But Apple might not be the right behemoth to use as a benchmark for Amazon’s recent performance. In 1994, Walmart’s net sales topped $60 billion for the first time, the neighborhood that Amazon’s playing in today. A decade later, Walmart’s sales had nearly quadrupled to $256 billion. Last year, Walmart’s sales clocked in at just south of $444 billion.
Amazon’s price-earnings ratio is currently a mind-boggling 3,275x. Apple’s is 10x. Traditional valuation metrics are obviously pointless for Amazon, but if you were to use Amazon’s PE for Apple, the stock would be trading at $144,618 per share, for a market cap of $136 trillion.
They are not selling the devices, they are not selling books and traffic is down.
Mike Shatzkin, the founder and chief executive of Idea Logical, on Barnes & Noble’s most recent quarter.
I have fond memories of going to Barnes & Noble as a kid; I fear that’s all they’ll be soon: memories.
Also, what’s up with this part of the story by Leslie Kaufman of The New York Times:
Other companies do not break out sales of their digital tablets, but Amazon has been saying sales of its Kindle Fire were strong. Analysts say Apple’s iPads also appear to be doing well.