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A comment on Amazon Is Now Worth More Than Wal-Mart. Parent comment

Re:Amazon Is Now Worth More Than Wal-Mart by crindy on Friday July 24, 2015 @04:00PM (#9944776)
It seems like Amazon is in a position where they could turn a huge profit, they're just choosing to reinvest instead. If they just raised prices by something tiny like 1%, wouldn't their profits become instantly massive?
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Re:Amazon Is Now Worth More Than Wal-Mart by fixxer on Friday July 24, 2015 @04:03PM (#9944801)
If consumers were insensitive to that hike, yes. Problem is they aren't, which is why Amazon has to keep reinvesting and operating on that razor thin margin. That strategy is as bad for individual companies as it is for the macroeconomy (Asian tiger bubble comes to mind).
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Re:Amazon Is Now Worth More Than Wal-Mart by DavidHm on Friday July 24, 2015 @08:11PM (#9945984)
They don't have to increase prices. They just need to reduce CAPEX (stop reinvesting the money). Their operating margins are healthy.
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