5 ms·

These just aren't the relevant concerns behind Amazon's stock performance in the last month. It's the capex.

• jacobjjacob 7mo ago
  Markets can’t see the product quality of a monopoly. It won’t be reflected in the metrics because there’s no competition to anchor the earnings to the real consumer value. But that doesn’t mean quality isn’t a factor- it makes them vulnerable to disruption. Warren Buffett is known to trade on product quality (he buys what he uses). So his sale could be based on that.
  • aetherson 7mo ago
    Amazon isn't a monopoly, it has 8% of retail in the US. There's no real evidence that this trade was made by Buffet himself, and it's part of a general major sell-off of Amazon that transparently did not temporally align with the idea that Amazon's retail business has suffered a decline in quality. This is the market making a (reasonable!) judgment that it lacks confidence that Amazon's capital expenditures will pay off.