The Best E-Commerce Stock Is Not Amazon

[cheryl]

The Best E-Commerce Stock Is Not Amazon - Forbes

When most people think of e-commerce, the first name that leaps to mind is Amazon.com (AMZN). There’s good reason for that: according to Macquarie Research, the retail giant accounted for more than half of all e-commerce growth last year.

Put another way, of every extra dollar Americans spent online in 2015, $0.51 went to Amazon. But be that as it may, Amazon, with its razor-thin profit margins, lack of a dividend and nosebleed P/E ratio of 426, is far from my favorite way to play this trend.

Instead, I prefer a “pick-and-shovel” company that’s about as old school as they come: the 109-year-old United Parcel Service (UPS).

 

[IVE GOTTA PACKAGE 4U]

It's where the hot money is right now. Don't want to be holding Amazon stock, when the big guys jump off the band wagon.

 

[wkmac]

What becomes of that razor thin profit margin when it tries to build a delivery infrastructure?

The only thing to be in Amazon's way may prove to be Amazon itself.

 

[Orion inc.]

What becomes of that razor thin profit margin when it tries to build a delivery infrastructure?

The only thing to be in Amazon's way may prove to be Amazon itself.

And if we raise their rates, it hurts those thin margins more.