alt Hacker News> Amazon's core business does not make sense. Despite being so massive, their retail operation makes almost no money.
Net profit margins for retail are only around 3% across the industry.
Amazon isn't actually doing anything unusual in that regard. Retail is just a very low profit margin business whether it's physical or online.
These numbers are always confusing to those of us in the tech world where SaaS net profit margins are always very high.
Replies
mullingitover • today at 7:06 PM
Walmart doesn’t have a cloud computing side business that’s wildly profitable.
This is correct, but it doesn't explain why Amazon would have a 2x market cap over Walmart when they both roughly make the same revenue.
You have to believe that Amazon is poised for much higher growth than they are to justify their current stock price.