Are We at Peak Amazon?
It's difficult to argue that Amazon.com (NASDAQ: AMZN) isn't a smashing success story. It's never been a wildly profitable company boasting wide margins. But, it makes up for thin margins with sheer size. The organization has grown to service roughly half of the United States' total e-commerce market, according to data from eMarketer, and it's successfully waded into the brick and mortar world with divisions like Whole Foods Market and a budding chain of physical bookstores.
There's going to come a point in time, however, when Amazon runs out of places and ways to cost-effectively expand. We may be nearing that point, if we're not there already.
It's a dangerous exercise to speak ill of one of Wall Street's most-loved investments, particularly when that name is a proven performer. Amazon shares are up more than 1800% over the past ten years, and they're still within easy reach of record highs hit just a little over a year ago. Last quarter's year-over-year top-line growth pace of 24% wasn't out of character for the company either.
Source Fool.com
