[There's] no clear explanation for increased spending or when we will see the benefits. |
A lot of these companies are rushing back to the Internet. We're certainly not seeing anything like the valuations during the dot-com boom. They're not outrageous, but they tend to be at the high end and could not easily be justified on a stand-alone basis. |
Although the company is still growing at a pretty handsome rate, it hasn't been beating its numbers with substantial upside. |
Amazon insists it is still on the path to double-digit operating margin, despite the fact the 2005 guidance distinctly suggests a reversal of this course with declining incremental operating margin. Clearly, something is amiss here. |
Amazon is handling the competition fairly well, but it is not pulling away from the pack (of other Internet retailers), |
Apparently the average selling price [of items on eBay] was good last quarter. That certainly would have helped with profits. |
but I think eBay and even Amazon have reached pretty high valuations that can't be supported even with their growth rate. |
Competition is seriously hurting Amazon and it needs to increase spending just to keep up with the market. The picture is getting worse: more spending, steeper decline in margins. |
Crossing the 50-percent threshold on broadband usage, increasing focus of traditional media companies on Internet, and most importantly, the gradual but profound change in consumers' behavior for content consumption is pushing many more advertisers to allocate more dollars online at the expense of traditional media. |
Even if he were running a content company like Yahoo, he would need to get in touch with the new type of content and audiences that are on the web. |
Everyone expects them to make a profit on operations, but if they can make more than $10 million from operations, it shows they are making some good improvements in the margin as well. |
Expectations, including ours this time, went beyond the reality of Yahoo, which nearly consistently has produced in-line results. |
For some reason, people had their hopes much higher than this, especially for the guidance. Everything seems to be in line. |
From what we are tracking and looking at our models, the transactional revenues, that is non-advertising, seems to be pretty strong, |
From what we are tracking and looking at our models, the transactional revenues, that is non-advertising, seems to be pretty strong. |