TSCDF - Amazon And Walmart Face Problems With Their India E-Commerce Businesses
- AMZN's investment in India has very low revenue contribution and high impact on operating margins. In comparison, WMT's FPKT is slightly better. Neither operation has turned a profit yet.
- AMZN and WMT indicate this is due to "challenging regulatory landscape", which is only partially true. There may have been exacerbating due diligence lapses.
- Litigants against both companies allege that these lapses have been going on for very long, which is problematic for continued "business as usual".
- Interestingly, trends indicate that exiting India e-commerce altogether would deliver very attractive boosts to stock performance to both parent companies in different contexts.
For further details see:
Amazon And Walmart Face Problems With Their India E-Commerce Businesses