Amazon is exposed to discretionary consumer spending and could suffer during a long , deep consumer spending downturn . As more media products are sold in digital formats , Amazon's physical warehouses and distribution network may not provide the same advantages . Although the company is off to a
Netflix's distribution advantage will fade away as digital content delivery becomes more ubiquitous.
Overstock has yet to achieve an annual profit. The company had piled up a $265 million accumulated deficit through the end of 2008.In December 2006, Overstock issued additional common stock to raise $40 million, diluting existing shareholders. If the company continues to burn cash, it may have to
Drugstore.com has yet to achieve profitability. The company had piled up a $770 million accumulated deficit through the end of 2008.Most of the products sold by Drugstore.com can be found at any neighborhood drugstore or supermarket, mitigating the convenience of shopping online.Drugstore.com sells
A challenging economic environment is resulting in weak demand for discretionary goods. Additionally, tightening credit markets have led to a drop in big-ticket jewelry purchases.A shakeout in the jewelry industry is resulting in liquidation sales, pressuring even the strong players in this
Amazon AMZN reported solid third-quarter results Oct. 22. As a result of the company's outperformance and slightly higher growth and profitability assumptions, we've raised our fair value estimate modestly. Most notable was the growth in media sales (54% of total sales), which grew 18% (excluding