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Considering Amazon is able to constantly expand into new retail fields (like groceries), launch a cloud services business, launch own its internal logistics bus
by yomly 11y ago
Considering Amazon is able to constantly expand into new retail fields (like groceries), launch a cloud services business, launch own its internal logistics business (that is the 2nd largest provider in the UK now) says to me the Retail business is probably more profitable than the media would have us believe...
- livingparadox 11y agoFrom speaking with internal Amazon employees, their total profit is negative because they invest more money into expansion than they are taking in. They make an incredible amount of money and likely would be turning a profit if not for the extensive investments. But as it stands, expenses (including expansion costs) outstrip revenue, thus profit is negative.
- tracker1 11y agoWhich is fine, so long as growth exceeds your debt-load. As it stands, it's one of two ways corporations should work. Either reinvest, or give out dividends... holding on to more money than your operational costs and/or shifting them to overseas subsidiaries to avoid taxes doesn't help the economy, or the communities the corporation services. I'm okay with either disbursement or reinvestment/expansion/research. Those both grow communities/economies.