The Best E-Commerce Stock Is Not Amazon

Discussion in 'The Latest UPS Headlines' started by cheryl, Feb 6, 2016.

  1. cheryl

    cheryl I started this. Staff Member

    The Best E-Commerce Stock Is Not Amazon - Forbes

    When most people think of e-commerce, the first name that leaps to mind is Amazon.com (AMZN). There’s good reason for that: according to Macquarie Research, the retail giant accounted for more than half of all e-commerce growth last year.

    Put another way, of every extra dollar Americans spent online in 2015, $0.51 went to Amazon. But be that as it may, Amazon, with its razor-thin profit margins, lack of a dividend and nosebleed P/E ratio of 426, is far from my favorite way to play this trend.

    Instead, I prefer a “pick-and-shovel” company that’s about as old school as they come: the 109-year-old United Parcel Service (UPS).
     
  2. It's where the hot money is right now. Don't want to be holding Amazon stock, when the big guys jump off the band wagon.
     
  3. wkmac

    wkmac Well-Known Member

    What becomes of that razor thin profit margin when it tries to build a delivery infrastructure?

    The only thing to be in Amazon's way may prove to be Amazon itself.
     
  4. Orion inc.

    Orion inc. I like turtles

    And if we raise their rates, it hurts those thin margins more.