Thursday, February 3, 2011

Analysis: Amazon Positioned for 50% Overall Market Share by End of 2012

Stephen Windwalker, Seeking Alpha: "... the low-margins interpretation [of Amazon's performance] misses another, much more dramatic story. The big story is that in just three years Amazon has positioned itself to triple its overall share of the U.S. book business for all formats. Before the end of 2012, Amazon could own more than half of the U.S. book business across all formats. ... " I agree with the above analysis and that Amazon will continue to be a great story over time, but I think the stock has gotten way ahead of itself from a P/E point-of-view. No reflection on the company, however, or its strategy.