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TheDumbMoney (42.99)

October 2010

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10

Amazon's Unenduring Competitive Advantage

October 25, 2010 – Comments (4) | RELATED TICKERS: AMZN

If you hold shares of AMZN, how long do you think Amazon is going to get away with assisting consumers with escaping their local state's sales taxes?   See here for the latest news:  http://www.dailyfinance.com/story/taxes/texas-bills-amazon-269-million-sales-taxes/19687338/.  If I were a shareholder, this sort of thing would worry the heck out of me.  This is not an ideological position for me -- right or wrong, I just do not see the present state of affairs continuing.  Eventually, AMZN is going to go the way of Dell and cave on state taxes, and it's going to be a huge hit to growth and profitability.  Disagree?  What are people's thoughts on this?  At a P/E of 60, I don't think AMZN has much margin for error at all.  [more]

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