Sure, probably true, but all that is pointing to if it makes sense from the buyers perspective. Just pointing out that it matters which side of the buyout you're on. From WF's perspective, if they've truly reached the pinnacle of their existence and someone offered them a 30% premium on that, it doesn't matter who the buyer is, it's a spectacular deal for them!
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Hah....Amazon buying wholefoods ....wow!!! What an awkward buyout...
- Thread starter S2007S
- Start date
Yeah...14 billion dollar valuation, what losers. I remember when they were a single health food store in Austin.
I remember when they were half owner of a healthfood store in the San Fernando Valley... Vegan purists hated the guy that split off and went corporate and all...
Railroads transformed the U.S. of A, then roads and trucks, then just-in-time-delivery computerized systems of store management [WalMart mastered that very early on], then the internet transformed shopping and we will move to local 3d printing of everything and eventually we will upload ourselves to a computer virtual reality and not need goods at all. Good times!!Amazon has the capital. They also recognize no boundaries with regard to expansion.
Well Amazon probably wants to expand to e-grocery business considering that's the only thing that it doesn't sell right now. But I agree paying $13.6 BILLION ALL CASH for an unsustainable organic grocery business is a too much. I mean the biggest criticism that the organic industry lays onto the conventional food industry is its unsustainability in terms of its land use, abuse of pesticide, genetic engineering, massive marketing and distribution but Whole Food is selling organic food exactly the same way as conventional grocery, in massive grocery chains across the country. So if the business model of conventional food industry is unsustainable, how is organic food when sold in the same business model of conventional food industry all of sudden sustainable?
They also had zero expertise in cloud storage and computing. And they are the world's best and the sector contributes a huge percentage to the bottom line. It takes visionary and smart people with a long term perspective at the top and in middle management then anything is possible. Not those creepy wall street type executives who can look as far as 3 months ahead and restructure only when forced by regulators or after just another transgression is discovered.
Most businesses that go outside their area of expertise fail. Fortunately AMZN is way to big of a company to fail but they have NO experience in retail food stores, let alone brick and mortar operations. WF will be absorbed and ruined in good time. WF is the genius in this deal selling out now before the increased organic food competition kills them eventually, so they are cashing out on top. AMZN will eventually have a dead weight grocery chain on their hands ruining it with their discount online retail approach. As I said AMZN is so huge it will not be a big deal if the combination fails. But kiss WF goodbye starting this year, may take some years to die but you heard it here first.
As much as I can't disagree with this in terms of where technology is going, what happens when you eliminate jobs that people need in order to make money to buy stuff? I have no idea what the curve would look like for variables such as higher efficency and cost savings vs. less people employed, but certainly this must be a factor.
If the truck that delivers the goods has no driver, and if the store that sells you the goods has no cashier, and perhaps if the shelves are also stocked by robots, then how do people make money to pay for the stuff they want to buy? The wealth will be concentrated even more by those at the very top who come up with all this, but they aren't the customers who provide most of the sales.
Edit: And since its all cashless, there will be no armed guards coming around every night to pick up cash, there will be nobody in the accounting offices dealing with receipts and invoices. The list just goes on and on about all the jobs that Amazon is going to make unnecessary.
The part that corporations try to maximize efficiencies and minimize cost is not the scary part. The scary part is that we have governments in power who don't understand that leaving humans and corporations to their own devices does not motivate them at all to self regulate. The only entity that can regulate is a government that can ensure and can strive for making work available and that such work is fairly rewarded. No company cares about that nor has that as part of their corporate philosophy. A governing political party that believes that rich individuals and corporations have the best of society at their heart is hopelessly lost and does not understand the slightest about the purpose of stewardship towards its own people.
They also had zero expertise in cloud storage and computing. And they are the world's best and the sector contributes a huge percentage to the bottom line. It takes visionary and smart people with a long term perspective at the top and in middle management then anything is possible. Not those creepy wall street type executives who can look as far as 3 months ahead and restructure only when forced by regulators or after just another transgression is discovered.
AWS probably a big chunk of the share price maybe 30-40% but earnings are modest - less a billion per quater. margins go down, prices also down
and no dividend, no share buyback. so basically investors don't see any return except as a share price and it's a bubble anyway
What are you talking about. Amazon is one of the biggest success stories for shareholders in history. If you care about dividends go and buy a railroad or electricity utility.
AWS probably a big chunk of the share price maybe 30-40% but earnings are modest - less a billion per quater. margins go down, prices also down
and no dividend, no share buyback. so basically investors don't see any return except as a share price and it's a bubble anyway
What are you talking about. Amazon is one of the biggest success stories for shareholders in history. If you care about dividends go and buy a railroad or electricity utility.
any bubble is success till it pops