Re the Fed: Still think no hike till next year.

I agree Amazon has the upper hand, the perception is it is steam rolling the competition.

However, the reality is that the steam rolling is not as bad as it appears, IMO. Best Buy is surviving, it has figured out its online strategy and sales are stable, while costs are under control. Walmart is still a force to reckon with, it generates a huge amount of cash flow, lots of ammunition to defend itself.  Ditto for Target and Macy's 

Pricing of items is generally on par between Brick and Mortar vs. Amazon.  Prime is without a doubt Amazon's Ace up its sleeve.  However, Prime is no Moat, IMO.  It can be replicated, and the likes of Walmart and Best Buy could attempt to counter act it even if at the margins to slow down Amazon.

That said, I agree with you that the market is still fully behind Amazon, in fact the PTs are now north of 650, I think I saw one set to $700+, which would lift the projected estimated Net Oprating Margins above 12%