April 29th, 2008
Written by Samir Diwan
Vaibhavi Tavare also contributed to this note.
Amazon (AMZN) and Wal-Mart (WMT) are giants on their own rights. Amazon is the world’s largest internet retailer while Wal-mart is the largest discount retailer. On 28 April 28, 2008, AMZN’s stock price was trading at USD81.97, at a P/E (ttm) multiple of 67.9 and WMT’s was at USD57.35, at a P/E (ttm) multiple of 18.5. We review the two companies in order to better understand the fundamentals that are currently in play for the two giants, and to better understand if AMZN deserves the price premium over WMT. read more…
February 7th, 2008
Written by Priyank Govila
Vishal Kapse also contributed to this Note
Amazon.com Inc., the world’s largest internet retailer, reported its fourth-quarter results on 30 Jan-08. Revenues grew 42% y/y for the QE Dec-07 due to strong sales in electronics, toys, soft goods (which includes jewelry, apparel, shoes) and sporting goods. Net income also posted a strong growth of 111% y/y and diluted EPS increased 109% y/y to $0.48 from $0.23. Even so, Amazon’s stock price was punished by investors – the stock fell from $77.70 on 31 Jan-08 to $72.09 on 5 Feb-08. We believe that this is because investors are disappointed by the lowered margin outlook provided by the company.
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