Like so many of you, I have gradually become a confirmed fan of the Amazon retail website
. It is incredibly easy and the service is incredibly good at finding all sorts of merchandise that I might otherwise not purchase and delivering it right to my doorstep. In spite of my own endorsement of the 'Amazon experience', I do not own any shares of Amazon (AMZN
) which closed at $176.85 on 1/24/11.
Perhaps to understand the Amazon (AMZN) retail pipeline it may be helpful to know a little about its namesake, the Amazon River. I found this website on the Amazon that revealed this information:
"The Amazon River is the world's second longest river. Only the Nile, in Africa, is longer. The Amazon however, at any one point in time has the highest amount of water flowing down it. No other river even comes close. It may not be the longest, but it is the widest.
The Amazon produces approximately 20 percent of all the water that the world's rivers pour into the oceans on its own."
Much like the Amazon River, much of the retail business that once flowed through the bricks and mortar retail stores down at the local mall, now go through the internet channels run by Amazon.com. Let's take a closer look at this retailing phenomenon and see if it is a worthwhile investment today.
According to the Yahoo "Profile" on Amazon (AMZN), the company
"...operates as an online retailer in North America and internationally. The company operates various retail Web sites, including amazon.com, amazon.co.uk, amazon.de, amazon.fr, amazon.co.jp, amazon.ca, and amazon.cn. Its product categories include books; movies, music, and games; digital downloads; electronics and computers; home and garden; toys, kids, and baby; grocery; apparel, shoes, and jewelry; health and beauty; sports and outdoors; and tools, auto, and industrial."
As reported on the Amazon Website, AMZN reported 3rd quarter results on October 21, 2010. Net sales for the quarter grew 39% to $7.56 billion from $5.45 billion in the same quarter the prior year. Net income increased 16% to $231 million in the quarter or $.51/diluted share, up from $199 million or $.45/diluted share the prior year.