Posted on 10/23/2014 11:29:47 AM PDT by C19fan
Amazon.com Inc. reports quarter three earnings today and analysts are expecting a loss of $0.75 per share according to FactSet. That’s a significant jump from their loss of $0.09 per share for the same period last year. Amazon follows a “profitless prosperity” model so losses aren’t unexpected, and typically Wall Street shrugs them off. This year, however, Amazon (AMZN) has seen more than a 20% drop in value on the NASDAQ.
Wall Street is becoming restless-- is it time for Amazon.com CEO Jeff Bezos to start focusing on the bottom line?
Yahoo Finance’s Henry Blodget believes that investors are clearly becoming frustrated. “I think what really spooked people was the big loss that they forecasted this quarter. It was startling even to me,” says Blodget who has been a long time Amazon shareholder.
(Excerpt) Read more at finance.yahoo.com ...
Declare no profit, pay no taxes.
Amazon’s phones aren’t selling, and the new “Prime” charges
Maybe that deal they made with California governor Jerry Brown to collect sales taxes on online sales wasn’t such a hot idea.
Being based in Seattle and buying the Washington Post doesn’t help either.
Imagine that. Investors might actually want to see profits.
Will wonders ever cease
How does one get so wealthy without making a profit?
>> Amazon follows a “profitless prosperity” model
There are times when I simply don’t recognize my world any more. Oh wait, I read Orwell, now I get it!
War is peace
Ignorance is strength
Loss is prosperity
Jeff Bezos is perhaps one of the most amazing and successful crooks in all of history.
Sounds like they’re business model is “we lose money on every sale but make it up on volume.”
I can understand going profitless to get things started and grab market share, especially on the internet where there are massive network effects, but Amazon has been around for 20 years.
Could it have anything to do with now being taxed in more and more states?
What’s the problem with being based in Seattle?
I do think Amazon has ever turned a profit in its history.
...
Bezos started Amazon from nothing. His strategy is well known to the investment community, and has worked well. Every now and then people have to write a column to attract readers, so they poke a stick at Bezos and his strategy.
Christmas is coming. They’ll make it up in volume.
>> Amazon has been around for 20 years
Yeah, I can remember shorting them in the dot-com bubble time. Hard to believe that was that long ago. I thought they were goners back then. Guess I’m too old-fashioned to understand “profitless prosperity”.
I guess Bezos is one of those prosperity preachers, your poorer and he’s richer and you get “prosperity” ... whatever that means.
His wealth is valued by the market valuation of the shares in Amazon and other corporations.
The market puts a high value on Amazon shares
Maybe not for long
That is pretty much what do. Their margins are woefully small or nonexistant. You cannot buy something for a buck and sell it for a buck ten.
“Profitless prosperity.” You know...it’s kind of like “dehydrated water” or “non-stick adhesives.”
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