- "Amazon has one of the best fundamental outlooks among all U.S. Internet stocks going into 2008," said Citi Investment Research analyst Mark S. Mahaney
- "Amazon will generate one of the sector's strongest revenue growth rates combined with one of the sector's biggest margin expansion moves" in 2008, he said.
- Amazon has been a consistent market share gainer and we believe will continue to be so for the foreseeable future. (I wonder who they are taking market share from?)
- Amazon has significant international presence -- 45% of its sales are outside North America. (If there is a US Slowdown or the big "R" materializes that should help Amazon)
- Amazon should have material margin expansion opportunity from the growth in high-margin 3rd party sales internationally."
I do not own any shares of Amazon or eBay but if you've read this blog for very long you know where I stand on both companies. I believe Amazon has the right plan and is executing it perfectly while eBay continues to struggle (you can't milk the cash cow and grow at the same time)
I certainly don't offer investment advise but if you are looking to grow your online business, you need to seriously consider opening up Amazon as a sales channel. eBay certainly should remain a part of your business, most businesses can use a liquidation channel and you never know when you will need to sell a snowbank.