Why is Amzn down??
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Date: August 1st, 2025 5:19 PM Author: white codepig
Buying opportunity. Irrational reaction imo.
The entire robotics story with Amazon doesn't even seem to be on investor's radars right now. Amazon has the highest revenue of any company in the world, but the margin's suck because they run an expensive business (lots of labor costs, machinery, data centers and warehouses). There have been a few stories about how they are actively working on humanoid robots which can complete "last mile" deliver and automate warehouse jobs. If Amazon is successful, the margin of their retail business is going to improve dramatically and profits are going way up.
(http://www.autoadmit.com/thread.php?thread_id=5756797&forum_id=2/en-en/#49149419) |
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Date: August 1st, 2025 7:58 PM Author: white codepig
You are underestimating the cost of labor. We’re taking about Amazon.com going from a single digit margin business to like 10-20%. And that part of the business alone makes 500+ billion annually.
Re AWS, “beat up” is crazy hyperbole. Their growth rate is 18%. It’s lower than competitors because they are growing off a much larger base. It’s not reasonable to expect that same growth percentage.
Their margin went from 40% to 32% (lol) literally because they are investing more capex in AI. The demand for GPUs far, far exceeds what AWS can provide. So we have investors literally selling because Amazon has to buy more GPUs in order to make even more money… translate this to any other company or industry and that sounds insane.
(http://www.autoadmit.com/thread.php?thread_id=5756797&forum_id=2/en-en/#49149874) |
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