Power of Prime: What to Watch in Amazon Earnings

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Jan. 30 (Bloomberg) -- Bloomberg Businessweek's Brad Stone and Bloomberg's Cory Johnson preview Amazon's post-holiday earnings on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

At amazon, is interesting to look at sales growth.

Overall retail inching forward.

Amazon is going to be 20 plus or more.

Prime is so powerful.

It gets customers to spend more.

It will be interesting to see if they say anything about it.

Are they leaving that growth cycle, showing that profit and reconnecting the ability to make money, or are they still building fulfillment centers, and how long will their shareholders allow them -- the worry about the bottom line, cory, what will you be watching when it comes to amazon.

It has always been about tight margins.

A long-term view seems to be clear.

He wonder if there will ever be a quarter where they break up the service business and finally tell us exactly how big that businesses.

Estimates are anywhere from $2 billion to three or $4 billion.

We will see if they break that out more clearly.

Brad is right.

The profits, it is fairly amazing the path that wall street gives this company.

Colin has a great note out today where he talks about companies over $25 billion, this is the most expensive out of our earnings business.

1000 times trading earnings.

100 times earnings.

It has this insane value on wall street based on the believe this thing could go to the moon.

It is interesting.

We experience consumers.

We shop on amazon in my house as well.

Those prices we push down next to nothing do not leave anything left for profit.

. class retailers hurting.

Is there lost amazon's game or should amazon be worried as well.

Fundamentally, we are seeing that amazon for a lot of shoppers is better and more convenient.

An incredible selection.

Here is what is really interesting.

At peak seasons, this should be a law.

Physical retailer performs worse . crowded, more competition for parking, selection is heard.

At peak seasons, amazon performs better because they centralize their inventory, they can drive down the marginal cost of shipping one item to every block , and they do not have any of the complexity or crowds.

Class d thing about the other things we are hearing, working on a kindle payment system in brick-and-mortar stores.

They do not have any experience.

Class i call my book the everything story because it is a company with unlimited ambition.

The physical stores should be interesting.

Amazon has paypal and v. it wants to expand its payment network and drive down the credit card processors.

They will have problems getting those systems into the small retailers who really view amazon as the enemy -- and they should.

Class there is not a great appreciation for how much they are disliked.

Amazon is the enemy of small business in the same way more mark was.

They find themselves pushing distribution closer and closer to city -- cities.

Taking inventory risk, having product on the shelves.

When that starts going away, amazon delivering into these major cities, right now, it will be a game changer for small businesses in america.

You mentioned you thought google was confused.

Is it different with amazon?

Absolutely.

Go no further than this wonderful book to learn that.

Really focused on where they want to go and take the business and how he wants to do it.

You get a good sense from his book they all work off of the same lay book and are rewarded every day when they go to work for doing things in that aggressive and focused amazon way.

Author of that amazing book,

This text has been automatically generated. It may not be 100% accurate.

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