Amazon's Amazing Ecosystem

In the following video, Fool contributor Matt Thalman discusses one reason all investors should take a closer look at Amazon.com.

Matt thinks the company's ecosystem has been built to last and will allow Amazon to dominate the retail space in the coming years. Amazon's business model is very similar to the razor-and-blade concept investors are familiar with, with the main difference being that once Amazon sells you the razor, it can sell more than just the blades to go along with it. That's something that many of the other dominant players in the technology world can't do.

Check out the video for more details

The best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.


Read/Post Comments (2) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 20, 2013, at 6:12 PM, MFMotleyStool wrote:

    A 3:39 pitch that I listened to and really it said little to nothing about Amazon really making profits, just a perpetuation of the scam that is behind Amazon's valuation. We will know that most of the sell side analysts are in the tank for this company but in a bad market will more of this cartel jump ship and tell the truth? When Amazon misses the $16.16B in revenue this quarter and potentially guides down will these sell side criminals, I mean analysts, raise price targets again?

    Amazon's scheme is to keep increasing revenue while making very little EPS. Therefore they keep entering new markets to perpetuate the scheme. I don't think you can be everything for everybody and sooner or later the company and the stock will be held accountable and sooner is my bet.

    BTW on the retail side as they are forced to raise profits to make money in a bad economy they will lose some customers who could care less about loyalty to Amazon but want the best price be it at Walmart, Target or anywhere else. Remember Amazon is being forced to collect taxes in more and more states.

  • Report this Comment On April 20, 2013, at 8:06 PM, JAVKO wrote:

    If it is such a fantastic stock, why have the analysts lowered their estimates in the past 3 months?

    Why hasn't that lowered the PPS?

    Despite constant bashing of AAPLE by all of you people, why haven't estimates come down as sharply as the PPS?

    Is the WS crook gang setting AMZN up for a beat (EPS of 0.1 Vs. estimates of 0.09) to push it higher?

    Is the same group setting AAPLE up for a miss for further justification of bashing the stock further down the drain?

    WS says it is all about profits, but their double standards show how manipulated the maket is. It won't matter what AMZN produces, it is to be pushed higher. And for that matter, AAPLE can do NO RIGHT - it will be crucified by mobsters of WS.

    So when is AMZN going to justfy its > 100 multiples?

    In the year of our lord 2100. But don't worry, it will be around $10,000 or more by then despite earning $5!!!!

    To all those interested in investing in these stock, take your cue from the headlines of manipulated journals: If the positive comes first, buy. If they highlight the negative (in the case of APPLE, they may do every thing right but miss on the most insignificant metric), then shoet/sell as you have no power to match the gangasters who are so silently supported by SEC!

Add your comment.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2375018, ~/Articles/ArticleHandler.aspx, 8/28/2014 9:05:47 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement