One Year After Surpassing Walmart, Amazon Is Now Bigger Than Berkshire

Tyler Durden's picture

Jeff Bezos has marked another milestone. Nearly one year to the day following Amazon's surpassing of Walmart's market capitalization on the heels of a great report on AWS (Amazon Web Services) growth numbers, Amazon has surpassed another American business icon's market capitalization, that of Warren Buffett's Berkshire Hathaway...

 

Notably tomorrow is Amazon Prime Day 2016.

Leaving the big question - when does Amazon rise to Apple's market cap level or will Apple fall to Amazon's market cap level? Place your bets...

 

Charts: Bloomberg

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Boris Alatovkrap's picture

This is measurement of size of customer? If Walmart is measure sag of scooter cart chassis, what is metric for success of Amazon? Size of UPPS delivery truck? How many food delivery per day? This is scare!

4 wheel drift's picture

what is metric for success of Amazon?

 

boris.....

you ought to know the answer to that.....   then again...   living in a former kommie place (of course that would excuse you if you

are/were a UN employee)...   the point.....

you do not know the meaning of real comfort and being idiotized by the 'consuming society (aka herd of imbeciles)  because you lived in kommie place....

 

bezos...   -(as much as i despise his ideology and indeed ulterior motives)...  has figured out the idiotized american con-sumer-ist...

not to mention the lazyness of about 55% plus of this former republic, hence his success.....

so to answer yer question....

the metric is ....  how idiotized the populi is already and amazon resolve to make the life of these zombies more ....    comfortable

this is how a dengerous idiotologue becomes a real threat....   he figures out the way to become extremely wealthy and then  goes

and vomits his true intents and ideotology upon the masses... reminds me of the herpes equivalent...  soros.....   after all..... once you

have grabbed such power....the rest comes relatively easy,

since the majority (if not all) of the idiots will never realize the....  'true intentions'

as for me....   i am just a peon sailing in a nutshell in a powerful river of ignorance, incapable (and most importantly), unwilling to change what is unchangeable....

time to travel to a deserted island....   permanently

 

???? (don't drink vodka, but do drink wine....   lots of it)   *no, not an alcoholic....   just love wine
Oldwood's picture

And all without making a profit.
The NEW American way.
Profits are verboten and our "currency" is based upon hopes and dreams of the future (otherwise known as debt)

jeff montanye's picture

now mr. oldwood, amazon on most occasions makes a profit.  just not a big one or a clearly growing one, although in both of the last two quarters it made about a buck a share.  whether the chart below supports a $700+ share price is a matter of some controversy.

March 31, 2016 1.07

Dec. 31, 2015 1.004

Sept. 30, 2015 0.17

June 30, 2015 0.19

March 31, 2015 -0.12

Dec. 31, 2014 0.4602

Sept. 30, 2014 -0.95

June 30, 2014 -0.27

March 31, 2014 0.23

Dec. 31, 2013 0.5128

Sept. 30, 2013 -0.09

June 30, 2013 -0.02

March 31, 2013 0.18

Dec. 31, 2012 0.2149

Sept. 30, 2012 -0.60

June 30, 2012 0.01

March 31, 2012 0.28

Dec. 31, 2011 0.3815

Sept. 30, 2011 0.14

June 30, 2011 0.41

March 31, 2011 0.44

Dec. 31, 2010 0.9063

Sept. 30, 2010 0.51

June 30, 2010 0.45

March 31, 2010 0.66

roddy6667's picture

Bezos hides most of his profits in other countries. He also has a lot of senior citizens working in non-airconditioned warehouses in the middle of summer for shit wages. If he ever has to bring his profits back to America and pay taxes like most of us have to, he might go under. Also, a change in the minimum wage law would hurt him a lot.

 

max2205's picture

I guess Gieco and ice cream shops and banks aren't doing it for Warren 

Dazman's picture

Mmmmmm ice cream. Love that salted caramel truffle Blizzard.

Cabreado's picture

I go out of my way to give Amazon no business.

flaminratzazz's picture

I would rather sit here and buy a trinket from Amazon then go fight the hordes of walmart zombies and half humanoids and wind up with something that falls apart before I get it into the trunk of the car.

Between bidding on things and checking amazon for suggested retail prices, I think we have a winning system. The brick and mortar are going the way of the news papers and net work television.

Cabreado's picture

The Trend is not your friend, my friend.

flaminratzazz's picture

if you are stating that the trend is the death of walmart, newspapers and network tv, then you are way wrong. I despise all three.

Cabreado's picture

You should think a little deeper than where to buy your trinkets today.

reader2010's picture

I'm sure it's gonna make every investor rich beyond his widest imagination just as those who invested in Tulips firmly hoped so back in the day. 

Atomizer's picture

Walmart closing 154 brick and mortar stores will aid in stock valuations and P/E.

Amazon is recapitizing it's debt to build treehouses in a dome. It's a tax deductible time out zone for unruly employees. Bet that some of those botanical rare plants won't make the urination watering.

/sarc

HRH of Aquitaine's picture
HRH of Aquitaine (not verified) Jul 11, 2016 11:08 PM

I don't know if anyone else has been paying attention to, or learned about, FBA. It is wild. There are also accusations of stealing (ideas and products) that FBA folks are trying to develop. Who is the thief? Amazon.

Considering tomorrow is the big Prime Day, what was the Alibaba day? Singles Day go buy yourself a present? This rabbit hole seems to get deeper and deeper.

FBA is Fulfillment by Amazon. Crazy concept. I don't understand how they can afford to have warehouses of used books and afford the shipping costs. I have bought and sold used books, off and on. The model just does not make sense to me. Books are heavy and cost a fortune to ship / move / and warehouse. I know, I have a library with 6-foot high bookshelves. Don't ask me what my last move cost because this is the answer: too much.

Cabreado's picture

When the model doesn't make sense, but keeps going...

perhaps collusion is the model,

a broken feeder system based on lies.

Croesus's picture

@ HRH:

I've been inside an Amazon fulfillment center. If you get a chance to visit one, do it; the idea that they somehow generate a profit is mind-blowing to anyone who sees their operation at the battlefield level.

There's an unbelievable amount of damaged product (the one I saw was a "big and bulky" products warehouse, and there was >25 trailer loads worth of product that was in the process of being liquidated to a wholesaler at cents on the dollar. 

Add-in a poor safety record, high turnover rate, and high labor costs.

The place looked like it was hemorrhaging FRN's.

 

 

Tijuana Donkey Show's picture

FBA is the ultimate in real estate. I use it, it's insane how cheap it is for my company. They make money off the entire process. Books are a small part of their biz now.

Reginald Blome's picture

Long time fba seller here. That's not in dispute, nor is it even scratching the surface of the evil.

When I try to explain to my staff the peculiarities of working with amzn as a 3rd party merchant, I describe it thusly: "I'd rather deal with a hybrid of the IRS, the Gestapo, and the Bangalore call center reps of a TBTF bank" - they are very open about their disdain for sellers, on the theory that there are always 20 more waiting to take your place. Buyer fraud is astronomical, because the reps' universal answer is to issue a refund (of my money!)

They steal inventory  (ever wonder about those warehouse deals?), short pay you, and fee you to death. And you can be permanently banned at any time for any (or no) reason.

I deliberately keep this portion of our business small, as it's akin to building a house on land you have no rights to. 

AWS is indeed neat, but it's not worth $500b. I personally doubt that the commerce of products will ever be a real moneymaker, much less pay for all the sunk capital over the decades.

Anyway, I suppose the main takeaway is for anyone considering fba as a business, to view it as a short term opportunity.

Catullus's picture

Walmart fucked themselves when they pulled their suppliers in and told them to slash their prices to stay on Walmart shelves. Meanwhile, Amazon helps you turnover more of your product and gives you warehouse space.

I walked into an Apple Store three weeks ago with a $100 gift card and didn't see a single thing I wanted to buy. I can't give this gift card away.

Atomizer's picture

Walmart also makes the supplier buy back the inventory if minimum product turns are not met. Walmart is a glorified distribution center. Depending on product cost, they make between 25-500% GP margin. Did I mention, you pay for the shelf space to market your product. 

Distribution product class 101. Take the educational class. About 4 years ago, 4 to 1 ratio. Depends on transportation, advertising, and product defect returns. All part of the illusion to make money as a partner with Walmart. 

Straw Dog's picture

Sell it on raise.com, I have bought there, they work well.

heisenberg991's picture

How do they make money with prime members with the 2 day shipping. I ordered a 20 pound medicine ball and the shipping alone had to be close to 15 bucks if they had to charge shipping . They are bleeding to death with this 2 day shipping.

Atomizer's picture

Good point. That's the other trick. You sell a product for a dollar + S/H. Receive quote to ship and add on 30% for shipping. Don't forget, product cost was only $0.50.

The other angle is to offer free shipping and build to 30% into selling price.

Lastly, you offer free S/H and build in 3 easy payments which include 60% into product cost. That way, if customer returns product..you still haven't lost money. Just profit margins. 

There are many more formulas. These are the basics. 

Hope that helps.

Remember, we're using a retail sales number of $1.00 for product being sold. All retail sales figures are subject to variations. 

cherry picker's picture

Wrote a book once. Never got published as the publisher closed the doors as my book was going to print. That was in the 90's.

Amazon has it listed, but says out of print. If Amazon sold it, would I get any royalties? I never gave them permission to put it on their site.

I wonder how much stuff they are selling and never paying royalties etc.

I have no use for Amazon or EBay. Over rated.

There will always be a need for traditional type stores, if nothing else as an excuse for people to leave their couches and move around a little.

Atomizer's picture

You didn't mail a copy to your mailing home address, first mistake. Take portions of the book and search if someone changed the title and kept the content. Otherwise, your book could be in limbo. Who knows, could be Amazon using a backlink to create clickbait.

Good luck

the.ghost.of.22wmr's picture
the.ghost.of.22wmr (not verified) Jul 11, 2016 10:58 PM

Fuck you Warren!

ChargingHandle's picture

Guilty. I use prime non stop. I have better things to do than to physically move to buy something. 

the.ghost.of.22wmr's picture
the.ghost.of.22wmr (not verified) ChargingHandle Jul 11, 2016 11:21 PM
Kreditanstalt's picture

WTF does Amazon even sell?  I've never bought anything from them in my life. 

I AM looking for a 1905 Hong Kong silver ten-cent piece if they have one...which I DOUBT...

lucky and good's picture

Because of its massive advertising budget and other ties to the company the media often seems to be in bed with Amazon. This means you seldom hear anything bad about the retail behemoth. While the people who love and support Amazon might claim the points above show Amazon and its CEO to be clever, cunning, and masters of the game, an argument can be make that an aura of evil hangs over much of what it has created.

Amazon is a job killer that abuses and exploits the brick and mortar stores that line streets throughout America. People should consider what kind of community and society they want in coming years before jumping on the Amazon bandwagon. Below are fifteen things Amazon is not in a hurry to tell you. I tried to stop at ten but found it impossible.

http://brucewilds.blogspot.com/2015/08/fifteen-things-amazon-wont-tell-you.html

wizteknet's picture

Sales taxes is really why I stopped using amazon as much, since I do live in Texas, found it cheaper on ebay on most occasion's. Plus in the beginning you didnt find out you owed taxes until after you ordered it, till they fixed there app finally.

BarkingCat's picture

The US Federal government uses AWS.

That might stop after Trump becomes president.

Bazos wants to fuck with Trump. I hope Trump wins and hits him back where it hurt.

 

walküre's picture

PRIME DAY SUCKS

Bullshit marketing gig but consumers will fall for this crap and that's ok. Just make it work to your benefit. No scruples, no scrutiny.

 

SoDamnMad's picture

 

Flash  World retaliates on Chinese copycatting of property intellectual 

All vendors who claim Amazon sells cheapened items of their design may file a claim to which Amazon must stop selling said items. Same with Alibaba and E Bay. Larger US and European equipment makers may file claim and claimed items currently on order or in transit shall have price additions payable to the infringed designer-seller. China immediately said it will take such illegal action to the Hague. Good luck with that MF

Last of the Middle Class's picture

Not going to miss the corner superstore broke every law and abused employees any way they could including having over time laws changed in their favor just so they could continue to grow. Amazon, love it, don't have to go to shit smelling wally world and wait for some stupid shit to figure out how to work the damn register. I'm amazed that Wally world STILL hasn't figured out the waiting in line is killing them. What a group of corporate fuck ups.

baldknobber's picture

When Wal-Mart started being run by accountants instead of retailers the course to ruin was set

StagStopa's picture

Make that the finest joo lawyers money can buy. Long lines? They dont care. After running every small business out, they know: you don't have a choice..

 

Roxi

JamaicaJim's picture

THIS..FROM A RECENT PURCHASE FROM AMAZON, FROM A SELLER TO ME....

"Hi, dear friend, we have attach one photo via this message, you can see the refund total is $4.00, please confirm it! As the new order, we shipped it yesterday. Please wait patiently! And please pay attention to your mail box because our items were packed into one thicker envelop being delivered by the postman. Many thanks for your kindly buying! Wish your whole family a lucky and happy life forever!"

I replied;

"I have a problem with patience. Last night I shot my own cook over some undercooked Egg Foo Young. I want to correct you; when I bought, it was not "kindly" - I was pissed off and had just told my best friend to stop drinking out of my toilet. My family is dead, and it is disrespectful to even bring them up in conversation with me. I hope my free gift is something my hooker wants - she bitches and moans like Mao with irritable bowel syndrome. Take Care, and try to not get shot by the commies that run your country."

 

....awaiting reply. Gotta LOVE those Chinese!