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Building out warehouses does not hurt earnings. The whole point of accounting is to try to match revenue with cost. If you build a warehouse you don't expense i
by samfisher83 8y ago
Building out warehouses does not hurt earnings. The whole point of accounting is to try to match revenue with cost. If you build a warehouse you don't expense it one time. It gets expensed over time.
If they develop software than that is treated as expense or buy movies that gets expensed.
Their core retail business is not that profitable. It goes from 0-3%. Its pretty much the same as walmart or any other retailer.
AWS is more profitable than their entire retail business.
- Zombieball 8y agoIf true, wouldn’t that just be a sign that AWS is not reinvesting fast enough?
- lmm 8y agoReinvestment is only good when there are profitable investments to be made. AWS already dominates its market; maybe investing more wouldn't help it make any more money, in which case it would be better to start paying dividends.
- mabbo 8y agoIn one quarterly earrings reports, Amazon as a whole earned $500m- of that, AWS earned $600m of it.