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It lost 2-3 billion dollars last year and shows no signs of improving its margins anytime soon. How is that a success?
by earthtolazlo 10y ago
It lost 2-3 billion dollars last year and shows no signs of improving its margins anytime soon. How is that a success?
- vadym909 10y agoSo then Amazon is not a success either?
- mcguire 10y agoCan you explain what Amazon's end game will be?
- ahuja_s 10y agoIt's customers are fucking g happy. What's the end game you're talking about? Have you invested into them? As a customer I LOVE them. As a student, I studied them in HBX.
- mcguire 10y agoIn 2015, Amazon made $596,000,000 on revenues of $107,006,000,000, or a profit margin of 0.6%. In 2012 and 2014, it lost money. How long should investors wait to see a real profit? Should they expect revenue growth to continue indefinitely?
- jrockway 10y agoHow much profit should they make? If there was a machine where you could insert a 20 dollar bill and it spit out the 20 and an additional 12 cents, would you not use that machine? How much would you pay to buy one?
- DontGiveTwoFlux 10y agoExcept that if you buy the Berkshire Hathaway machine you'll put in $20 and get back a dollar.
- sk5t 10y agoI dunno, how much money would you keep in a savings account that yields 0.5% APR?
- DasIch 10y agoAmazon's endgame is to become the retailer, the only one.
- bobbytherobot 10y agoFirst off, Amazon never lost a billion dollars in a single year. More importantly, Amazon could have been profitable for much of the time. Amazon was losing money because they were taking the profits from they successful ventures and pouring it into new ventures. With Uber, what change do they make right now to switch to a very profitable company? Amazon had that option, Uber does not.
- mdonahoe 10y ago...Increase prices?
- tptacek 10y agoAmazon's position in the market is so weird that Matt Levine calls it a charity for the American consumer sponsored by the stock market. But it's at least clear how Amazon could generate money long-term; if it wasn't, nobody would invest in it.
- tedunangst 10y agoI think you mean Yglesias?
- wolf550e 10y agoYes, Levine quoted Yglesias https://www.bloomberg.com/view/articles/2016-12-02/quant-awareness-and-odd-lot-trades https://www.bloomberg.com/view/articles/2016-12-02/quant-awa... http://www.slate.com/blogs/moneybox/2013/04/12/amazon_as_corporate_charity_jeff_bezos_says_there_s_a_method_to_the_madness.html http://www.slate.com/blogs/moneybox/2013/04/12/amazon_as_cor...
- josu 10y agoThey created a product that people love. I live in Mexico City and my experience is similar to the one described in Singapore plus the fact that, so far, nobody has ever been kidnapped while hailing an Uber. Riding a cab has gone from slightly dangerous and more often than not displeasing experience, to having a private driver that knows exactly where I want to go and how to get there. Besides, not having to use cash is a great plus as well. So there you go, maybe not in the US, but in many countries where the taxi industry totally sucked, Uber has already succeeded big time.
- glhaynes 10y agoSo there you go, maybe not in the US, but in many countries where the taxi industry totally sucked, Uber has already succeeded big time. Succeeded at making money? Or, failing that, succeeded at building a business that someday may be able to make money?
- josu 10y agoThey could double the price of a taxi ride and most people would still use Uber. So, I don't know if they are losing money in Mexico, but even if they are they could turn it around today.
- fernandotakai 10y ago> I live in Mexico City and my experience is similar to the one described in Singapore same in brazil. my parents never took cabs and now they are using uber for everything (since they are getting older and don't want to drive everywhere).