Amazon.com's Prime service has drawn in customers and added to the company's sales, but it has failed to lead to a long-term profit for the company. Travis Hoium dug deeper into the numbers and found that actual gross margin has fallen from 7% a year ago to 6.8% last quarter. The Fool's Erin Miller sat down with Travis to see why he's not seeing a strong future for Amazon's stock.
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The article Amazon Prime Is the Problem originally appeared on Fool.com.
Erin Miller has no position in any stocks mentioned. Travis Hoium is short shares of Amazon.com. The Motley Fool recommends Amazon.com, Google, and Netflix. The Motley Fool owns shares of Amazon.com, Google, and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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