Visual Summary Of AMZN: 263x PE Multiple, 1.2% Operating Margin, $7 Million Net Income And 69,100 Employees

Tyler Durden's picture

Amazon's AH stock price may be up or down, or sideways, but here are the three charts that make us scratch our heads as we valiantly try to explain how a company which just said it will have 'Operating income (loss) inbetween $(350) million and $(50) million" and currently has a 263x P/E, is worth anywhere close to where it is trading.

First, here is AMZN's total employees and worldwide sales growth. The blue line is self-explanatory. The red one shows that the firm has grown its employees by 150% in the past two years.

Next, here is AMZN's Trailing Twelve Month Operating Margin, which has collapsed from just under 5% to just 1.2% in the past two years, and its TTM Net Income, which at last check was $377 million, which fits about 263 times inside its market cap of $100 billion.

Finally, here is what AMZN's quarterly operating profit and net income were. At June 30, the company with 69,100 employees and over $54 billion in LTM net sales, posted... $7,000,000 in Net Income.

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slaughterer's picture

The Tao of Amazon can be summed up in one sentence:

Profit is for pussies.  

Central Bankster's picture

But here is the rub, in a completely manipulated market, which is constantly being fed new money to purchase securities, who cares if a company even makes money.  The whole market is a casino and it is entirely the fault of the Fed for not allowing assets to be priced based on cashflow and earnings, because that requires the market ponzi to collapse.

Buck Johnson's picture

Yep, and they can't allow that or the whole Western banking system would collapse and so would the US economy.  They are doing everything they can to keep this system going.  Some say that they are trying to start a WWIII.  I would say yes but that is insane.  To cover up the economy going under by starting a massive war that we may or may not win is crazy. 

fatcat's picture

it's not that crazy. there is no "we" in the banker circles. they are hedged, and play both sides of any war. regardless of who wins, they benefit.

war has been used to "kick start" economies (aka create more debt) in the past. why not again?

Rainman's picture

hahaha.....what bad can possibly happen to a public pension fund overweight on a 263 PE ??? 

Stoploss's picture

Ahh, i get it, all the fired ex govt employees go to work for amazon whorehouse, er, wharehouorse, er.

Let me guess, amazon's benny's are real close to gov't benny's.

mjk0259's picture

Not even close, they don't even provide A/C in the warehouses and people work like dogs with no beeny's.

zyby's picture

Those employees are soon to be replaced by robots...

max2205's picture

Amazon taco. Empty.

Govt secretly keeping them alive so they can delivery the mail when the USPS get shut the fuck down.

Daily Bail's picture

For what it's worth, back in 2000, as the internet meltdown was upon us and Maria Bartiromo was in treatment for Bubble Psychosis, I built a short position of 84,000 shares in Amazon for a fund I was managing.  It turned out to be a decent 6-month trade (made 15%). The value then was about 1/5 of the current market cap.  Glad I got the F out.

Meanwhile, this bit of news could be a gamechanger in the Corzine case.

Look for a Special Prosecutor to be appointed in the next few weeks. Obama buddy Jon Corzine's luck might finally be starting to run out.

CORZINE CRONYISM BOMBSHELL - High Ranking DOJ Lawyers And AG Eric Holder Were Partners In Firm That Represented MF Global
The Monkey's picture

These crooks get shuffled around because they know too much.

NotApplicable's picture

Bombshell? Special Prosecutor?

*checks HuffPo main page*

Lead Story? (all about Romney looking dumb in the UK)

*clicks on politics tab*

Lead Story? (all about Romney looking dumb in the UK, but with a different pic and headline)

Until it shows up on these pages, it ain't shit as far as "scandals" go.

Perhaps you were meaning to refer to Kristen Stewart?

azzhatter's picture

The Obama business model - no profit

Ese Pinche's picture

Employees are for the ignorant

Need More Cowbell's picture

But I use Facebood and Netflix and Amazon so shouldn't I but the stock???  Gag.

eclectic syncretist's picture

How true.  The problem is amazon has been a high-flyer for so many years there's no telling when the collapse in P/E will come

SoCalBusted's picture

I was nervous when it was at $90 and cashed out!

Azannoth's picture

That's what you get when the CEO of your Company is an Idealist

And some people bitch about firms putting profits before people, sure just do it the other way around and see how quickly you hit the pavement

ZerOhead's picture

It's heading south fast...

With 69,000 employees and tanking income numbers it's time for Amazon to get hooked up to the Fed's discount window before it's in Mexico or Brazil or something...

Chuck Bone's picture

Hopium: $220 new, $24 used

unwashedmass's picture

and it is climbing after hours......i have gold and silver miners selling for pennies that make more than Amzn......

JustObserving's picture

Only thing that can save the miners is China starts buying them.  The pressure on gold and silver to stay down is immense.  Asians are buying gold and silver but not fast enough to match paper silver and gold being sold.

Why are the Europeans not buying gold and silver in quantity now there is a threat of printing by Draghi?

NotApplicable's picture

Interesting thought that the only thing preventing tin-pot dictators from nationalizing everything might be cutting a deal with the Chinese instead.

Not that either will benefit mankind...

cougar_w's picture

Hey don't knock it. Any of us would be well with 7 large.

Dr. No's picture


"That's the thing about greed, Arch. It's blind.And it doesn't know when to stop."


kaa1016's picture

...all that and the stock is still $217. WTF...

same old story's picture

What 's the big a deal.   So they have no profits, that is so old school.  

Not Too Important's picture

I was just watching Cavuto on Fox. They showed a daily DJ chart, down just before the close, with a green number, plus sign and green arrow up.

The chart clearly showed the opening was higher than the number they gave. Do they think no one looks at the chart to see if it matches their numbers?

Then Cavuto was saying they lost the feed to Draghi. Twice. The snippet that did get through was Draghi blaming the whole mess on the Americans.

From this I deduce two things: that the Europeans are getting ready to fight the Americans for reparations for their collapse, and Fox thinks their viewers are stupid.

From this I declare two things: Europe won't get a dime of my money, and I won't watch Fox anymore. One small step for man, . . .

azzhatter's picture

very expensive distribution model- it's really tough to sell low cost stuff via internet. Shipping costs as much as product in many cases

devo's picture

And they're charging tax on some items. It's a disaster. I noticed everything I've ordered off the site in the past month has taken forever to ship. Like two weeks. They must be trying out some new method...maybe partnerships with third party wholesalers or something. It's not working--I canceled my order rather than wait 2 weeks for a shipment.

Abiotic Oil's picture

Yep.  I've noticed a siginificant slowdown as well.  It is especially prevelant among their non-Amazon vendors, affiliates or whatever.  I keep ordering something that shows "in stock" from the vendor for a very low price, then the item doesn't ship, then order is cancelled.

I think the vendors are trying to rely on JIT inventory and don't actually order the "in stock" item until the customer orders it.  Then the distributor is out of stock and nothing ships.

Then I get pissed and stop being a customer.

devo's picture

I think the vendors are trying to rely on JIT inventory and don't actually order the "in stock" item until the customer orders it.  Then the distributor is out of stock and nothing ships.

Exactly, it feels like order fulfillment by demand now.

pursueliberty's picture

Dealing with this right now on a cell booster I ordered for the inlaws.

Amazon show three packages shipping.  One arrived three days after ordering, which was a simple 25' cable, the other two still have no arrival date, credit card charged.

Has drop shipped written all over it, though it didn't appear to be a outside vendor I was purchasing from.  Cable came in amazon box.  This is my first issue, but I hope it isn't the start of a problem.  Ebay and other means will be cheaper after they start charging tax in many cases.

Next step is to set up a shipping hub in northern Mexico to find lower wages.

NotApplicable's picture

Northern Mexico you say?

Hmm.... there might just be some product in that area that can improve their margins.

grid-b-gone's picture

I like Amazon as a customer but recently found a couple items in local brick & mortar stores at lower prices, even after sales tax, time, and gas.

AMZN is convenient, but not always the best value.

Never One Roach's picture

The proposed taxing internet sales at the state level, and increased postal costs will further crush American businesses and shove the economy furhter into a recession from what I read. In fact, I think the coming sales tax will be the final, severe knockout blow to several stores that are barely alive now, live Sears and JCP and Macy's. Their physical stores are empty. When their internet sales plunge, kiss them goodbye with the hundreds of thousands they employ.

The law of unintended consequences will bite these states who patied for years and are now desperate.

kito's picture

rumor has it that bernanke, in an exclusive deal with amazon,  will be distributing digital dollars to all citizens via the kindle......

Bobbyrib's picture

If Amazon weren't losing money on Kindles, that would be an excellent deal for them.

devo's picture

$25-35 stock.

Takes a lot to shoot down high flyers. I don't know how you hold the bag and think it's going to grow into that multiple rather than cut bait now.


azzhatter's picture

My kid dabbles in selling stuff via ebay. He was telling me last night he sold something for $375.00 and it cost him $250.00 to ship it. Heavy metal piece. Imagine selling $10.00 stuff and paying $12.00 to ship it

AldousHuxley's picture


no fee, no shipping cost, all cash transaction

azzhatter's picture

good for local stuff, I agree. But he is selling specialty stuff and demand is nationwide. Shipping costs will eat you alive

jerry_theking_lawler's picture

this 'inventory management' binge has gone too far.....example: a piece of my plant equipment went down wednesday (broke a belt which costs $15.00). Had to get it overnighted to have the equipment up and running to make production....cost $40.00.

but with accountants, inventory analyists, maintenance and purchasing specialists....i spent $55 dollars for an item that would cost $15 plus lost production because some genius didn't want to purchase it and keep it on hand (on the books as inventory/capital)....

makes no logical sense.

NotApplicable's picture

Unfortunately, it has an extremely high scammer to legitimate respondent rate. My wife and daughter have been using it to clear out a lot of stuff we no longer need, and they deal at least five frauds for every real person.

Then, even many of the real people seem incapable of completing a transaction, or even responding in a timely fashion. Instead, they'll get an email a month or so later.

Local Quickswap group works well though, as there plenty of regulars who work as market-makers in the spirit of Fred G. Sanford.