AMZN?

[Dividendsrule]

I've been a dyed in the wool dividend growth investor for 6 years. 

I've always scoffed at AMZN, they don't make money, their margins are razor thin, they lose a lot of money...In fact that argument still stands. They barely make money, for example I'm way happier to invest in IBM where they have added value bells and whistles in their cloud offerings versus AMZN's which is basically a commodity. 
I'm also a happy WMT long by the way, been for years. WMT does 4X the revenues that AMZN does.

Anyway, I own a crappy MetroPCS samsung phone, and I am an Amazon Prime customer. 
They finally cracked the music code for me, I used to use a flash drive MP3 player in my car for cheap music. 
Now, I just have an app on my cheap Samsung, and it works. It works quite well. 

Now I don't need to have any other sources of music, I just have this cheap app.

The execution is pretty good. 

I'm finally softening up. Is there a possibility this turns into a good dividend growth investing play? Or will the company just crash when the ponzi scheme runs out, with other businesses doing what it does, better. Maybe it will be a poor man's Apple or something like that? 

What do you guys think.

I'm skeptical because there is no focus in this company, rockets, movies, tv shows, cloud, transport...

Thoughts, opinions, death threats?

[navyasw02]

(06-21-2016, 03:15 PM)Dividendsrule Wrote: I've been a dyed in the wool dividend growth investor for 6 years. 

I've always scoffed at AMZN, they don't make money, their margins are razor thin, they lose a lot of money...In fact that argument still stands. They barely make money, for example I'm way happier to invest in IBM where they have added value bells and whistles in their cloud offerings versus AMZN's which is basically a commodity. 
I'm also a happy WMT long by the way, been for years. WMT does 4X the revenues that AMZN does.

Anyway, I own a crappy MetroPCS samsung phone, and I am an Amazon Prime customer. 
They finally cracked the music code for me, I used to use a flash drive MP3 player in my car for cheap music. 
Now, I just have an app on my cheap Samsung, and it works. It works quite well. 

Now I don't need to have any other sources of music, I just have this cheap app.

The execution is pretty good. 

I'm finally softening up. Is there a possibility this turns into a good dividend growth investing play? Or will the company just crash when the ponzi scheme runs out, with other businesses doing what it does, better. Maybe it will be a poor man's Apple or something like that? 

What do you guys think.

I'm skeptical because there is no focus in this company, rockets, movies, tv shows, cloud, transport...

Thoughts, opinions, death threats?

Is there a plan for them to start a dividend?

The fact that Amazon doesn't make a profit isn't really true, they invest significant amount of money in growing their business.  If they hadn't, they'd just be another out of business online retailer, not an online one stop shop and cloud/media giant.

[Dividendsrule]

"Is there a plan for them to start a dividend?"

None that I know of. But it might be a dividend story if they can figure out how to get a lot of free cash flow down the line- i.e. if all the millennials stick with Prime after they raise prices because they are very well trained.

[benjamen]

IBM versus AMZN comparison:
http://seekingalpha.com/article/3983145-...end-11-p-e

Interesting that IBM and AMZN cloud based revenue are virtually identical.

[Dividendsrule]

Nice. Yep, agree with the thesis of the article too. I guess I'm just experiencing some FOMO (fear of missing out) around AMZN....

But then again, the dividend growth philosophy is always boots on the ground, what you see is what you get, nose to the grindstone.

In other words it is probably inappropriate of me to conjecture into the future, we have no idea what will happen in the future, whether Bezos will pay a dividend, etc...

There is a small part of me that wants to try to "skate to where the puck will be"....But nothing pushing me to pull the trigger.