Tag Archives: wmt

Amazon Will Continue To Spend Big To Improve Deliveries: Analyst

In 2010,  Amazon.com ( AMZN ) had 26 fulfillment centers in North America. By 2017, it will have 88, according to Cowen analyst John Blackledge. In a research report Monday, Blackledge said Amazon’s rapid and massive delivery-system expansion — costing the company more than $10 billion in capital expenditures — is likely to continue for the foreseeable future and will not be matched by rivals such as Wal-Mart ( WMT ). Doubling down on the fulfillment business has meant continuing to innovate, especially in Amazon’s “sortation” centers, he says. These centers facilitate last-mile delivery — a notorious problem for any logistics company — and, in conjunction with increased United States Postal Service shipments, improvements here could drive down the cost of shipping to $1.85 per order from $4 to $5, the analyst says. Though spending big bucks has depressed earnings, generating  ire among investors , the strategy is sticking close to the philosophy Jeff Bezos laid out in his 1997 letter to shareholders, that the company will put customers before profits. Amazon stock was up a fraction in afternoon trading on the stock market today , near 624. The company has an IBD Composite Rating of 77, where 99 is the highest. After a low-volume breakout, Amazon is still in buy range from a 603.34 cup-with-handle buy point. Amazon is an IBD Leaderboard stock. The company, meanwhile, also is expanding its FedEx ( FDX ) and UPS ( UPS )-like services. The company has acknowledged a widely circulated rumor that it was launching a fleet of jets — which it is leasing and operating out of Wilmington, Ohio. Blackledge says this program has the potential to make every Amazon item deliverable within a day. The e-commerce leader is set to report Q1 earnings after the close Thursday. Wedbush analyst Michael Pachter wrote in a research note last week that the company will miss EPS expectations but beat sales estimates.

New Amazon.com Kindle E-Reader Is Smallest, Lightest Yet

After leaked images and details of the new Amazon.com ( AMZN ) e-reader — which largely proved true — the company announced the official details Wednesday. The new Kindle, called Oasis, is the most expensive, smallest and lightest offering to date. Available for preorder Wednesday at $289.99, the Oasis is 30% thinner and more than 20% lighter than the other Kindles, according to Amazon’s press release . Oasis weighs just 4.6 ounces, and it measures 3.4 millimeters — just more than a 10th of an inch — at its thinnest point. Amazon stock was up 1.5%, near 613, in midday trading on the stock market today . Amazon has an IBD Composite Rating of 78, where 99 is the highest. Shares broke out of a cup-with-handle base with a 603.34 buy point, in high volume. In its release, Amazon touted the two-battery design that the company claims will extend the battery life for “months.” The cheapest Kindle starts at $79.99 but lacks the high-resolution display and other features of the more expensive models, such as the Paperwhite — $119.99 — or the Voyage, which costs $199.99. Amazon does not break out Kindle sales. The Associated Press , citing the Association of American Publishers, reported that overall e-reader sales rose 3.8% in 2014 to $3.37 billion. Seattle-based Amazon’s content distribution — it also live streams video like Netflix ( NFLX ) does, for example — sets it apart from e-commerce players such as eBay ( EBAY ) and Wal-Mart ( WMT ).

Amazon.com Expands Same-Day Delivery To 11 New Metro Markets

E-commerce leader  Amazon.com ( AMZN ) announced Wednesday that it was expanding its free same-day delivery to 11 additional metro areas and expanding coverage in several other major markets. Free same-day delivery is a perk for Amazon Prime subscribers, the company’s loyalty program. Prime costs $99 a year, for which users get such other perks as free video streaming and free two-day shipping where same-day delivery isn’t available. With same-day delivery, orders placed before noon arrive before 9 p.m. the same day. Afternoon orders will arrive the next day, the company said in a press release Wednesday . Prime has more than 50 million members, some analysts say, and is a key driver in the e-commerce giant’s explosive growth. Amazon hasn’t disclosed its Prime membership numbers. Amazon says that its same-day delivery option is now available in more than 1,000 cities and towns in the U.S. “Prime was developed to make shopping on Amazon fast and convenient, and millions of members have used Prime free same-day delivery to make their lives even easier,” Greg Greeley, vice president of Prime, said in the release. “We keep making Prime better, and as our operational capabilities grow, we will continue to invent and expand delivery options that customers love.” The new markets are Cincinnati; Milwaukee; the North Carolina cities of Charlotte and Raleigh; the California cities of Fresno, Sacramento and Stockton; Richmond, Va.; Louisville, Ky.; Nashville, Tenn.; and Tucson, Ariz. Amazon stock was up nearly 2%, near 597, in afternoon trading on the stock market today . The company has an IBD Composite Rating of 77, where 99 is the highest. Amazon and its dominant position in the market have left other e-tailers such as eBay ( EBAY ) and Wal-Mart ’ s ( WMT ) Walmart.com struggling to gain traction. EBay announced Tuesday that it was launching a new shipping supplies store that will provide eBay-branded packaging to sellers using the site. Startups such as Jet.com and Alibaba ( BABA )-backed ShopRunner are also taking aim at Amazon’s dominance.