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Amazon's profit is not what I would call "a lot." As recently as 2015 they had some negative quarters. This quarter last year less than 1%. 2018 has been higher
by ams6110 8y ago
Amazon's profit is not what I would call "a lot." As recently as 2015 they had some negative quarters. This quarter last year less than 1%. 2018 has been higher but not more than about 4%. Compare the top 20 or so corporations average profitability of about 15%, and Apple's over 20%.
https://ycharts.com/companies/AMZN/profit_margin https://ycharts.com/companies/AMZN/profit_margin
- nebulous1 8y agoIsn't that due to their currently loss-making Amazon Studios though?
- austenallred 8y agoIt’s due to the fact that any ounce of profit they would have they instead re-invest into the business. Which, by the way, is (part of) why they’re so dominant.
- ryandrake 8y agoAnother chart showing what Amazon has been doing: https://infographic.statista.com/normal/chartoftheday_4298_amazons_long_term_growth_n.jpg https://infographic.statista.com/normal/chartoftheday_4298_a... Net income doesn’t do that naturally or by accident.
- ams6110 8y agoAgree, and in any other situation we'd be praising this. They're investing in the future, looking beyond the next quarter, etc.
- ionised 8y agoInvesting in the future is great. Doing so while exploiting workers and dubious tax arrangements is not.