The Great Confusion That Is Amazon Stock And Its Huge Value | Exploring Markets

The Great Confusion That Is Amazon Stock And Its Huge Value


You really develop very sustainable moats around a business when you run it at low margins. Very few companies want to come into Amazon's core businesses and try to compete with them at 1% margins or 2% margins.
Amazon has this permission because it has trained its shareholders to believe that everything will work out in the end. As a result, it has a shareholder base that's geared for the long-run. The biggest holder, by far, is Bezos himself. 
Amazon's ability to lure more third-party sellers, proves the company is becoming a kind of hub, or infrastructure, through which all manner of e-commerce transactions flow, the analyst says. 
You can imagine Amazon retreating into the background some day, not actually selling any goods itself, but rather running the network that facilitates interactions of buyers and sellers, and collecting a toll.