Global supply chain by Amazon.

FrigidFTSup

Resident Suit
Estimates are we give them a 70% discount on shipping rates.


I won't pretend to know the numbers but do they really think they can do it much cheaper than that?
It's not just about cost. It's about controlling everything from the initial order to final delivery. Paying peanuts to someone on top of it is just a bonus.
 

Orion inc.

I like turtles
Sounds like the current UPS mentality. Show me the money this quarter so I can get my bonus and inflate the stock price. Who cares about the future.

Amazon spends massive amounts of money on building their business. If they stopped investing in the future, i.e building fulfillment centers, logistics, entertainment productions, cloud services and so much more, they would show a huge profit. They currently make money on almost everything they sell and do. But then the growth would stop.
Amazon has revenue but terrible slim profit margins.

They are neglecting their core business that generates that revenue. They've got their own competitors and problems. One thing ups does do well is that it stays on solid financial ground even in bad economic times. Amazon leverages a lot of debt and bets on investors still investing without consistent returns over the years.

That's where the two differ and it does make all the difference. Bezos has said himself he doesn't think Amazon will be around in 10 years. That says where his mindset is for the future
 

kingOFchester

Well-Known Member
Amazon has revenue but terrible slim profit margins.

They are neglecting their core business that generates that revenue. They've got their own competitors and problems. One thing ups does do well is that it stays on solid financial ground even in bad economic times. Amazon leverages a lot of debt and bets on investors still investing without consistent returns over the years.

That's where the two differ and it does make all the difference. Bezos has said himself he doesn't think Amazon will be around in 10 years. That says where his mindset is for the future

You should get a job on wall street.
 

FrigidFTSup

Resident Suit
It's basic learning how to read and research.

Apparently it is lacking in some people.
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kingOFchester

Well-Known Member
It's basic learning how to read and research.

You must have a fortune in your 401k. Wonder why you would continue to work for Brown when you seem to know more then wall street.

Truth is, it doesn't matter whether they make money or not, now or in the future. Plenty of articles over the last 10 years saying they are going to fold soon do to low or no profit.

As long as wall street believes in them, they are a force to be reckoned with.

I think its extremely naive to sit back and say a company with 100 billion in revenue , can't put a sizable dent in a company with 50 billion in revenue. They make a dent, wall street will notice. And ultimately it doesn't matter what two truck drivers think or the general public. Just what Wall street thinks.


I have said enough as this will just continue to go back and fourth. I assume I will not be able to persuade you to accept my thinking, and you will certainly not get me to think this is a non issue for UPS. You can have the last word.
 
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Orion inc.

I like turtles
You must have a fortune in your 401k. Wonder why you would continue to work for Brown when you seem to know more then wall street.

Truth is, it doesn't matter whether they make money or not, now or in the future. Plenty of articles over the last 10 years saying they are going to fold soon do to low or no profit.

As long as wall street believes in them, they are a force to be reckoned with.

I think its extremely naive to sit back and say a company with 100 billion in revenue , can't put a sizable dent in a company with 50 billion in revenue. They make a dent, wall street will notice. And ultimately it doesn't matter what two truck drivers think or the general public. Just what Wall street thinks.


I have said enough as this will just continue to go back and fourth. I assume I will not be able to persuade you to accept my thinking, and you will certainly not get me to think this is a non issue for UPS. You can have the last word.
Actually we have a lot in our retirement funds because we planned and invested well. Thank you. I keep working because I actually like my job, staying busy and I have plans for the kids I want to fund to help them do better than me. But thank you for your concern.

Never claimed to know more than Wall Street but I do understand economics. You're looking at just revenue. Look at the numbers after their expenses and their slim profit margins. That's why they need constant investors to prop up their stock. If those investors start calling for more returns, it'll hurt Amazon. Also fedex and ups aren't going to keep giving them the huge discounts now with all the media attention Amazon is bringing in this. That's a profit margin killer right there.

You have to think about this as positions of strength in the long term related to their industries. Amazon has great revenue but is starting to ignore its core business. It's overreaching in a sense.
 
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