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Amazon (NASDAQ:AMZN) and the Coming Onslaught

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My son Brenton needed a new bike. I looked online and quickly discounted buying online due to the assembly required. Sometimes assembly is worth it, such as when I bought an air-hockey table from Sears (NASDAQ:SHLD). (I posted hourly updates on Facebook (NASDAQ:FB) while I assembled the table at 4 a.m. on Christmas evening.)

Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) offer bikes for sale and they assemble them. You can't beat the deal for a $200 kid's bike. Even if Amazon moves to the point of same-day delivery, its offering of items requiring a great deal of time to assemble -- also sold inexpensively at retailers -- isn't an edge.

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I believe it makes better financial sense for those seeking exposure in retail to look again at stocks like Wal-Mart, Target, Google (NASDAQ:GOOG), eBay (NASDAQ:EBAY), and Apple (NASDAQ:AAPL) rather than Amazon.

For example, too much media attention has been made about Amazon's move into next-day and even same-day delivery plans. This is something that is already offered by others with a much lower earnings multiple.

Wal-Mart offers online ordering and pickup at the store; Wal-Mart's sister store, Sam' Club, even offers this service for bulk wholesale purchases. Wal-Mart also has almost ten times the sales revenue as Amazon. It is virtually impossible to imagine Amazon ever having the ability to out-negotiate vendors for product pricing over Wal-Mart. If Amazon doesn't have a product price advantage, what do they really have over Wal-Mart?

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