Amazon's Margins Matter

On the surface, it looks like Amazon.com (NASDAQ: AMZN  ) continues to keep more money from each sale than it did a year ago. But a deeper look shows that margins didn't really rise from 25.3% to 27.7% -- they fell from 5.7% to 5.6%. The reason is Prime, Amazon's free shipping and streaming subscription that helps the company grow sales but hurts its bottom line. Erin Miller sat down with contributor Travis Hoium to see why investors should be concerned about Amazon's Prime push and its continued margin slide. 

Amazon is changing retail
Even if Amazon isn't profitable, it is changing how traditional retailers compete, even sending some into bankruptcy. To learn about two retailers with especially good prospects, take a look at The Motley Fool's special free report: "The Death of Wal-Mart: The Real Cash Kings Changing the Face of Retail." In it, you'll see how these two cash kings are able to consistently outperform and how they're planning to ride the waves of retail's changing tide. You can access it by clicking here.


Read/Post Comments (0) | Recommend This Article (0)

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.

Be the first one to comment on this article.

DocumentId: 2713727, ~/Articles/ArticleHandler.aspx, 4/17/2014 8:56:18 PM

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