See? Varchild TOLD YOU SO!!!!
Remember when I kept screaming on my Blog and in replies to other people's Comments on the AMZN chart that AMAZON = low low low margins...lots of spending.....and what happens when spending keeps climbing while sales growth slips?
Well??? Now we know. Amazon just reported third quarter earnings was down 73%. Income from over 200 Million to just over 60 million year over year.
That is quite a slip.....But can it entirely be blamed on "Spending?" I doubt it. I am not listening in on the Earnings Conference Call but I suspect the EUROZONE Slowdown is to blame.
Amazon is far more exposed internationally versus some Bricks and Mortar competitors like Best Buy and Sears and Lowes and Home Depot and CVS and Walgreens and yes...my 1 and only investment stock Gamestop.
So with the collapse and huge REALITY CHECK with (NFLX) and now (AMZN) maybe Wall Street will start to understand that there is strength in having a HYBRID business of BRICKS + DIGITAL.....
Instead of Borders and Tower Records = 100% Bricks.
AMAZON and NETFLIX = 100% Digital.
Hey! There is a key reason why Apple chose to open up retail stores....
There is a reason why SONY decided to try its hand in Sony Stores (albeit they have a very small number of them).
Ultimately....There's key advantages in having Bricks Stores right there advertising, marketing, and selling your merchandise.....versus hoping for Online Shopper Growth to Sustain itself in a down economy.
There are advantages to BRICKS....folks.....Seriously.... DO YOU BELIEVE ME NOW???
(FAKE VERIZON COMMERCIAL) BELIEVE ME NOW???? BELIEVE ME NOW??? GOOD!