Amazon's Shipping Cost: Bottom-Line Boost or Burden?

Before you go, we thought you'd like these...
Before you go close icon

Amazon.com's elevated valuation rests partially on the premise that if the company maximizes revenues today, profits and cash flow will follow in the future. In this third installment of a four-part series on Amazon's stock, Fool contributor Asit Sharma examines a specific area commonly cited as a potential profit center for the company: its shipping. Asit reviews the current impact of shipping on Amazon's profit and loss statement as well as one important external factor that will also bear on shipping margin in the coming years.

For more insight into Amazon's valuation, check out part one and part two of this series.

Are you also skeptical about Amazon at its current stock price? Interested in learning more about a world-class brick-and-mortar retailer?

Costco's low prices haven't just benefited customers -- shareholders have walloped the market, returning 11,000% over the past two decades. However, with prices near all-time highs, is the ride over for Costco investors? To answer that and more, The Motley Fool's compiled a premium research report with in-depth analysis on Costco. Simply click here now to gain instant access to this valuable investor's resource.


The article Amazon's Shipping Cost: Bottom-Line Boost or Burden? originally appeared on Fool.com.

Fool contributor Asit Sharma has no position in any stocks mentioned. The Motley Fool recommends and owns shares of Amazon.com. 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.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners

Nature Gets Revenge On Safari Hunter Who Killed Elephants And Lions For Sport Nature Gets Revenge On Safari Hunter Who Killed Elephants And Lions For Sport
12 Facts That Will Make You Smarter Than Your Friends 12 Facts That Will Make You Smarter Than Your Friends
Man Is Horrified To Learn His Biological Father's Identity - But A Look In The Mirror Man Is Horrified To Learn His Biological Father's Identity - But A Look In The Mirror