Free in the Kindle Store this morning -
- Duality: Guardians of the Light, Book 1 by Renee Wildes. It’s a free romance novel from Samhain Publishing with an Elvish backdrop.
It’s nice to see a free book from Samhain in the Kindle Store again.
Amazon compared to Wal Mart, Stock called undervalued
Barron’s have some Amazon research from Cowen & Company talking about how Amazon might grow their share like Wal-Mart.
Cowen & Co consider Amazon’s stock to be significantly undervalued. They do point out that Amazon has a rather high P/E multiple.
frequently been labeled an expensive stock due to its high forward price-to-earnings multiple, which has averaged 54 times over the past five years.
They then put forward the case that Amazon’s high valuation is justified.
It’s a very interesting read. Particularly interesting is their rationale for why Amazon can sustain its dominance.
Amazon’s dominance sustainable due to 4 factors
Cowen & Co. lists these four factors -
- Massive Volume = lowest prices, low shipping, great returns policy.
- Vast Selection + Third Party Sellers.
- Innovative products like Kindle and Amazon Web Services.
- Low customer acquisition costs due to strong brand.
Hard to argue with those factors. However, they make taking on Amazon hard, not impossible.
There are threats to Amazon’s dominance
Amazon is too big to not have enemies.
- There’s a certain search company that intends to start selling digital goods and cloud services.
- Apple is getting ready to release iPhone++, the Apple iSlate, and it might affect the Kindle.
- There are viable threats like Play.com from the UK.
- WalMart is not a minor threat.
While it is accurate to say that Amazon has significant advantages over brick and mortar stores (except WalMart), a lot of Amazon’s new enemies float in the ether and have lots of tricks up their sleeves.
Amazon’s position as the buying destination of the Internet is very, very lucrative and lots of companies (not just companies that sell stuff) are eyeing it.
Filed under: free books Tagged: | free kindle books, new walmart
