My dueling partner, Alyce Lomax, framed Amazon.com's
The problem is even worse than it appears. Consumers are interested in the best total package, considering price, service, selection, and time between purchase and enjoyment. Without local service and the opportunity for immediate gratification, Amazon must overdeliver on price and selection to remain competitive. With operating margins already at a razor-thin 4.37%, even a 1% reduction in the customer price of a product would knock a gigantic chunk out of profits.
The stock may be down, but it's still not cheap. Things can still get worse.