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Breakingviews: Amazon's split delivery

Friday, January 31, 2014 - 02:55

Jan. 31 - Antony Currie and Robert Cyran explain why the online retailer's investors should focus more on rising margins and less on slowing revenue growth.

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So looking at Amazon this bowling investors a -- -- lost the flow although one can argue -- -- that -- for a while it's trading at a whopping hunt and fitness LA times Ford earnings. That makes sense herself with a new look and insist they were up and the release we see -- that we are expressing investors at the margins are actually going -- Amazon -- in the companies and nonprofit effort that benefit could run numbers for you know -- -- decade it's great for people like you are pro shop absolutely I think it's not fingered for investors and many money. And so what they've shown actually is they they they actually mean. A profit last quarter you know global. I'm and they did that by slowing down growth and what's. What's more urged drivers they they said they're gonna actually increase the price of prime that's where you can pre shipping its hand bucks a year yeah what that means is that he released -- higher margins than. Investors in the news stocks down about 60% -- that's the missing -- accessible and -- did actually increased by about six or 12% happens most of us these past not as much as there as investors expecting. Lately been looking Amazon you'll saying the policy is is that. We agree with Jeff diesels -- go ahead throw the companies to get -- -- profits now we know -- -- some day you're gonna make huge amounts of profit promise and that's it. The company seems to be saying. Today's that they were gonna start protesting a profit. And investors freaked out because they're like oh wait it's can be really really hard to make enough profits and she we look at a couple things in the course that profit community of hot -- along with several other companies have managed to lose a bit lost money from the a terrible holy season and they remain a lot of shoppers actually -- because of -- that is paid and free shipping and then. They said hey your your gift to get there on December 24 gets what commitment yet. And so whether it's in the press having to -- whether his team that you pay for -- is that I can't we be screwed up we'll have a have a credit night and jump by -- the course the lord my exact site -- -- looking ahead this thing that the census commission is also not necessary mean pretty -- to make 200 million they did you see management innocent but that's the that's normal. Get at Amazon and it paid they would never -- -- -- corporate areas it's going to be really bad but then you know low expectations are very low expectations and yet to see look at thing is the problem is that investors have such high expectations -- -- that -- -- hundred times earnings you know it. No matter what Amazon can display them which is cyclical led to -- and I can we get them actual that we can get slightly better much Islam on on chipping some cheap by increasing prime. And also we want to grow as much -- -- -- -- investment treatment to make more money which should be briefing. That they settled yet again the problem is that investors want their cake they wanted -- that he wanted to they weren't fantastic separate north fantastic earnings and a partner company to be the best attitude to. To the best servers experience for anyone and and the company's current discounts and fortunately. Thanks -- will be back with more breaking these next week.

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Breakingviews: Amazon's split delivery

Friday, January 31, 2014 - 02:55