Amazon announced mixed numbers in Q4 - revenue below consensus, but earnings above (38 US-cents vs. consensus of 17 US-cents).
I think this is a great company, the one I shop most with. Even if the whole Kindle-Fire project will be a total failure, i love to get their shares at a 10 % discount vs. some hours ago. I will take this as an entry opportunity. Conference call will follow in 30 minutes, but I will open a position now.
What are your impressions after listening to the conference call and a further couple of days?
ReplyDeleteI believe that amazon still has a lot of opportunities for expansion here in Germany. If you compare the US site and the German site you can shop for almost anything (including food items!) in the US, as opposed to Germany, where the product section is more limited. I realize that older companies' mailorder business (such as Quelle) took terrible hits, but compared to them amazon still has the image of a fresh, trustworthy company younger people like to shop at. What's your take on this?
Well, buying AMZN was a shot on getting the shares at a 10 % discount. The company is not very open in communicating with shareholders. I also did no deep analysis on their latest numbers - just looked like a 10 % price drop was not justified.
DeleteBusiness potential is huge, but CapEx of the company is too. And as always in retail, margins are small. The share is up 4 % since I entered. I will keep a close look on price development - if the share resumes the good price-trend of the past month its a keep. Otherwise it will be replaced.