Image source: International Business Times – http://www.ibtimes.com/amazon-nearly-20-years-business-it-still-doesnt-make-money-investors-dont-seem-care-1513368
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FOX Business
by Megan Henney
2/27/2018
Excerpt:
Jeff Bezos’ sprawling e-commerce giant Amazon reportedly raked in more than $5.6 billion in U.S. profits in 2017, but despite that, the company essentially paid $0 in federal income taxes.
That’s largely attributable to “excess stock-based compensation deductions” and the effect of the 2017 Tax Act, according to the company’s U.S. Securities and Exchange Commission filing earlier this month. In other words, Amazon was able to leverage the tax credits and breaks to zero out taxes it owed this year, according to the Institute on Taxation and Economy Policy (ITEP), a non-partisan think tank.
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View the complete article including videos and links at:
https://www.foxbusiness.com/markets/amazon-earned-5-6b-in-2017-but-paid-no-federal-taxes
Demystifying The Amazon Valuation Dilemma
Seeking Alpha
by Chuck Carnevale
5/24/2018
Excerpt:
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Amazon: The Valuation Dark Side
It is no secret that Amazon (NASDAQ:AMZN) has been a disruptive force, especially relating to the retail sector. On the other hand, the company is also an enigma to the value focused fundamental investor such as yours truly. Over its entire operating history as a publicly traded company, Amazon has commanded what can only be called stratospheric earnings multiples (P/E ratios). Whether you’re looking at trailing twelve month (TTM) earnings, forward earnings or a blend of the two, Amazon’s P/E ratio is typically reported at more than 100 times earnings.
This seems bizarre because from a profitability point of view, Amazon looks like a real dud. Its gross profit margins have historically come in above 20%, and for 2016, its gross profit margin exceeded 35%. However, net profit margins are a different story entirely. When it does generate a net profit margin, which it only occasionally does, it is typically razor thin. Furthermore, Amazon has often generated large negative net profit margins. Therefore, the primary reason why its P/E ratios are so high is because it produces very little in the way of earnings (E).
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https://seekingalpha.com/article/4076280-demystifying-amazon-valuation-dilemma
I believe Amazon has been legally using the IRS corporate tax law in several ways for many years to financially scam the hard-working American Public . Conversely, AMZN Stock Holders and Purchasers of Amazon Goods and Services have been handsomely rewarded. I think our MSM has likely chosen to ignore the problem.
One important facet of the problem I have not yet seen prominently discussed in the MSM is the PERENNIAL high AMZN Price to Earnings Ratio (P/E). I believe this fact has been INTENTIONALLY UTILIZED by Amazon for many years to monopolistically utilize their GROSS PROFIT to RELENTLESSLY EXPAND at the expense of its more socially responsible competitors.
CORPORATE INCOME TAXES ARE LARGELY BASED ON NET PROFIT, not gross profit. – http://www.taxpolicycenter.org/briefing-book/how-does-corporate-income-tax-work
Wake up folks! There is a ‘fungus among us!’
‘Not welcome here’: Amazon faces growing resistance to its second home
The Guardian
3/15/2018
https://www.theguardian.com/technology/2018/mar/15/not-welcome-here-amazon-faces-growing-resistance-to-its-second-home
Trump escalates attack on Amazon, demands Washington Post register as ‘lobbyist’
Politico
by Brent D. Griffiths
3/31/2018
https://www.politico.com/story/2018/03/31/trump-amazon-post-office-jeff-bezos-492853
REPORT: Chief White House Economist Larry Kudlow Backs POTUS Trump’s War On ‘Problem’ Amazon
Gateway Pundit
by Joshua Caplan
4/3/2018
Why Amazon could be the next black swan for the market
CNBC
by Lawrence McDonald
5/8/2018
https://www.cnbc.com/2018/05/08/why-amazon-could-be-the-next-black-swan-for-the-market.html
Ex-Walmart US CEO slams Amazon for using cloud and ad profits to support retail
CNBC
by Berkeley Lovelace Jr.
5/30/2018
https://www.cnbc.com/2018/05/30/bill-simon-slams-amazon-for-using-cloud-and-ad-profits-to-support-retail.html
‘You’re Stupid If You Don’t Get Scared’: When Amazon Goes From Partner to Rival
The giant’s cloud-computing business offers a look inside its model for expanding. Some partners praise the unit’s chief for straddling the line between ally and competitor
Wall Street Journal
by Jay Greene and Laura Stevens
6/1/2018
https://www.wsj.com/articles/how-amazon-wins-1527845402
Amazon declares lowest tax bill in YEARS one month after boss revealed as richest man in modern history
The online retailer paid £4.6million last year – or just over 6% on profits of £72million – despite the firm’s UK sales soaring by a quarter to £8.8billion in 2017
https://www.mirror.co.uk/news/uk-news/amazon-now-pay-even-less-13023482
Cramer: Forget FANG, the market loves WANG
— It might be time to rethink FANG, according to CNBC’s Jim Cramer.
— Given Thursday’s market moves, Cramer thinks WANG – Walmart, Apple, Netflix and Google – might be the new group of stocks to watch.
CNBC
by Carmin Chappell
8/16/2018
https://www.cnbc.com/2018/08/16/cramer-forget-fang-the-market-loves-wang.html
Walmart Just Put Amazon on Notice
https://www.bloomberg.com/view/articles/2018-08-16/walmart-wmt-earnings-just-put-amazon-amzn-on-notice
Walmart Set to Dethrone Amazon As New Online Grocery King
The Motley Fool
by Rich Duprey
12/2/2018
https://www.fool.com/investing/2018/12/02/forget-amazon-walmart-is-the-new-king-online-groce.aspx
Amazon to get cut in half? If you look at these charts, it might not sound so crazy
https://www.cnbc.com/2018/12/14/amazon-to-get-cut-in-half-the-charts-make-it-look-possible.html
Walmart’s smart hiring will make it Amazon’s ‘worst nightmare’ within 2 years, strategist says
— Walmart’s e-commerce sales rose 43 percent during the fourth quarter.
— Burt Flickinger, managing director of Strategic Resource Group, told CNBC that the U.S. firm is on the way to challenging Amazon’s dominance.
CNBC
by David Reid
February 20, 2019
https://www.cnbc.com/2019/02/20/walmart-hiring-will-make-it-amazons-worst-nightmare-within-2-years.html
Walmart, Not Amazon, Was the Retail Disruptor in 2018
https://finance.yahoo.com/news/walmart-not-amazon-retail-disruptor-110100343.html
Why buying Walmart stock over Amazon is a better bet now
7 ways the old-school retailer has an edge on its fast-moving rival
https://www.marketwatch.com/story/why-buying-walmart-stock-over-amazon-is-a-better-bet-now-2019-02-25