Their biggest problem in my opinion is that most people like me mostly buy small things up to $100 regularly and many times the entire profit margin goes to pay for the shipping and I only paid like $10 for Prime. The things where the profit margin is larger and to a bigger extent, the third party sellers is where they make money.
Still only losing 200 million is nothing for such a company. Another half a cent on every item and it's covered.
They will eventually turn big profits. There are enough places where they will find to squeeze out more money.
I'm not saying that the stock isn't overpriced. They aren't yet at their full potential for expansions besides for the new things that they're doing like groceries.
By the way, does local express delivery still exist?
You are being generously optimistic. We're not talking about a web startup here. Amazon and Amazon Prime has been aroud for years and should have long matured and stabilized by now. Amazon's main appeal is their prices and cheap, fast shipping which (we now know) are unrealistically low.
In fact, Bezos admitted that the AWS department is the bulk of their profit, which speaks volumes about the sad state of profits in their retail department.
Basically, if I opened a pizza shop and sold slices for 25 cents, I would be turning the biggest revenue in town, but taking a huge loss. My point is, investors may bail if Amazon can't find a way to become seriously profitable.
