despite the meme, had more revenue in 2018 than Uber, Lyft, Netflix, Airbnb, Salesforce and Tesla ... combined. Oh yeah, and more profit than all those combined too. And this is a fourth tier grocery chain... kind of makes you think 🤔 How much impact do these tech cos *really* have?
60Billion. True.
I like their chicken wings
I like the chicken tenders
Interesting observation. How about market cap ? That’s what really matters for employees as that determines share price and eventually the value of RSUs.
How about innovation?
God damn it, Albertsons isn’t building out technology and investing billions in rnd with patents that stand to push the company to a trillion dollar valuation. Their growth will continue to gradually decrease while Airbnb or Tesla have the ability to be printing money in a few years. Not to mention the level of disruption that stands to change the way the entire world functions. The stock valuations are based on future potential profits not current profits, think aws.
Exactly. People could have said exact same thing about MS /Apple etc combined vs Walmart in early 90s. And now look
Wrong. Both Tesla and Airbnb face fierce competitive pressure ( Porsche, gm ,booking.com / peek just off my head )and ... there’s no moat in sight. Let’s not get started on Lyft / Uber. Sorry to break it to you but these companies just aren’t that special and they’re mostly held up by hype and VC. With the exception of Salesforce, who I think has attained true lock-in, they just don’t have defensible products.
At first, I was going to say “but think of the long term profit margins” while Albertsons is low single digits. Then I realized Uber is still negative margin with no end in sight. And then I realized the true metric is Rev per employee. Albertsons has way more employees needed to run a grocery store. So, the solution is obvious - make all cashiers either autonomous (tech already exists! Unlike cars) or independent contractors (heh). But what about the massive amount of cap ex that a grocery store chain has that tech cos like Uber don’t? Easy! Either through a sale-leaseback scheme, or franchise new locations. Voila - an asset and capital light model on par with tech cos, except massive (positive!) cash flow from operations with a proven business model. I’d like my billion in VC funding now, please.
Plus what is more wholesome than bringing food to people?
Take that Uber, AirBnB.. For Albertsons financials: Sales and other revenue was $14.0 billion during both the 12 weeks ended February 23, 2019 ("fourth quarter of fiscal 2018") and the 12 weeks ended February 24, 2018 ("fourth quarter of fiscal 2017"). The Company's identical sales increase of 1.1% was offset by a reduction in sales related to store closures. Gross profit margin increased to 29.0% during the fourth quarter of fiscal 2018 compared to 28.1% during the fourth quarter of fiscal 2017. The Company's gross profit margin benefited from better than expected fuel gross profit margin during the fourth quarter of fiscal 2018.
29% increase 🙈📈🤑
You're lumping some profitable and unprofitable companies together and then saying they had less total profit vs Albertsons. OK, but Salesforce alone has more profit.
I've thought about this a lot. What you are getting out of tech company stock is a chance to vote for how you want to change the world. Who you want to give your power to. No grocery chain is going to cause taxi drivers to riot in France. That said, they are totally dependent on long term hype. Man, what a weird reality we live in if this is true.
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