David Rosenthal: uncertainty

Transcript context

…Yes, for sure. I think there's a bear case around ecommerce. Even though they're growing quickly at 37% pre-pandemic, ecommerce is still not a profitable segment for them. It's crazy to think that you could be doing $75 billion in ecommerce revenue that hasn't reached scale that makes it profitable. I guess it's just a massive, massive fixed cost on the employee base to make that happen. I don't know but when I have in the past used Walmart ecommerce, it's because they run some crazy deals. I wonder if they're also running really low margins or even discounting the low cost on some stuff. Because they don't break it out, I don't know if that means it's not profitable. I don't know what profit we're talking about there. Amazon, for a long time, was not profitable because they were reinvesting in more distribution centers and stuff like that. Maybe it's that, but there's a work in progress going on with Walmart ecommerce.…

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