The Dismantling of Amazon Canada and selling Amazon

All 7 Amazon warehouses were close down in Montreal and Amazon Prime customers are getting 7 days delivery. As a disclosure, I will complete the sale of all my Amazon shares early next week.

All 7 Amazon warehouses were close down in Montreal and Amazon Prime customers (the few remaining one) are getting 1 week delivery. Amazon Canada has decided to close all warehouses in the East Canada, serving 8 million people. As seen below Prime customers have to wait 1 week to get their goods in Montreal. Amazon is now totally uncompetitive as I can get my goods from Costco or Walmart within 2 days - COSTCO warehouse employees are unionized and they can still deliver. This is also a massive boycott of Amazon across the country for this reason.

The article constitutes my personal views and is for entertainment purposes only. The main goal of this article is to log my personal views. Nothing in this article or these posts in this blog should constitute an investment advice. The projections and estimates provided here should be considered as purely speculative. Do your own model and projections. Please refer to the disclaimer at the end of this article for more details.

When Amazon decided to shut down operation in my region my gut reaction was to not renew my Amazon Prime membership ending this month - I was a customer since 1997 and a Prime since 2003. As a shareholder, it got also me thinking how Amazon is fragile to any threat of syndicalization - the decision to shut down Amazon operation in Quebec was not officially claimed by the company to the fact that one warehouse decided to unionized of course! - but we all know what is the real cause. As a shareholder, it got me thinking however of the fragility of Amazon business model in retail. I think warehouse employees work conditions are so rough that the threat of having a union is forcing the management to make some very drastic decision. More importantly for sure Amazon has lost its customer centric culture. Amazon under Andy Jassy is a number crunching company.

The other threat for Amazon is the commodization of the hyperscalers in AI. For AI, in contrast to the classic computing and storage service, the value has moved from the hyperscaler to the solution/chip provider (i.e TSM/NVIDIA). So Amazon is competing head to head with Microsoft, Google, Oracle or even NVIDIA cloud. Large AI vendors such as Open AI are building their own cloud infrastructure (Stargate).

Anyway, Amazon seems weak, it is trading at 40x trailing earnings, most of the margin expansion is in the past, revenue is growing at 10% clip and I am out. Amazon was a 5 bagger for a late 2016 investment and there are other opportunities elsewhere. Do not fall in love with a stock we are here to make money.

Time to move on for me and time to move one also for you Andy Jassy..

I will be 15-20% cash

Disclaimer: The above article constitutes my or the authors’ personal views and is for entertainment purposes only. It is not to be construed as financial advice in any shape or form. Please do your own research and seek your own advice from a qualified financial advisor. I / The authors may from time to time hold positions in the aforementioned stocks consistent with the views and opinions expressed in this article. The information provided in this article is not making promises, or guarantees regarding the accuracy of information supplied, nor that you guarantee for the completeness of the information here. The information in this article is opinion-based and that these opinions do not reflect the ideas, ideologies, or points of view of any organization the authors may be potentially affiliated with. The authors reserve the right to change the content of this blog or the above article. The performance represented is historical" and that "past performance is not a reliable indicator of future results and investors may not recover the full amount invested.