Amazon.com Inc. (AMZN) Is Not About Profits: Bezos

It’s about competition, or a lack of it, for Amazon.com Inc. (NASDAQ:AMZN). You see, with e-commerce being dominated by a company with low profit margins, there is little room for other companies to be competitive and profitable  in the marketplace. In markets where the leader has comfortable margins, there are opportunities for competitors to offer lower prices. But in the e-commerce world, Bezos has pinched margins to the point that any company who wants to jump in, will have a lot of difficulty making money if it wants to be competitive. And tighter margins that squeeze out competitors for that $1 trillion land area means there is more of that land area available for those competitors in the market already.

Late in Tuesday’s trading session, Amazon.com Inc. (NASDAQ:AMZN) stock was down about 1 percent on the day to $265.65.

What do you think of the Amazon.com Inc. (NASDAQ:AMZN) business model? Would you be a buyer of Amazon.com stock, and what is your prognosis for the stock in 2013? We’d love your comments!

Please see these related AMZN articles:

Amazon to Build New Fulfillment Center, Launches Prime in Canada

Amazon Grows Another 40% This Year? Maybe Not So Much

Billionaire Ken Fisher Likes Amazon Stock