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> At the same time, Amazon was not cash flow positive when it IPOed and it figured out its profitibility just fine. That’s not a fair statement. Amazon is an o
by austincheney 6y ago
> At the same time, Amazon was not cash flow positive when it IPOed and it figured out its profitibility just fine.
That’s not a fair statement. Amazon is an online retailer but only achieved profitability due to AWS. I don’t think their retail business is even profitable now if you slice it out.
- jasode 6y ago> Amazon is an online retailer but only achieved profitability due to AWS. Amazon was profitable in 2002 to 2006 before introduction of AWS services of S3 and EC2 in 2006: https://dazeinfo.com/2019/11/06/amazon-net-income-by-year-graphfarm/ https://dazeinfo.com/2019/11/06/amazon-net-income-by-year-gr... Amazon's retail operation is profitable on its own. They just have lower profit margins than AWS.
- JJMcJ 6y ago> lower profit margins than AWS Which is exactly what you would expect. Retail is notoriously low margin.
- austincheney 6y agoNet income is not profit. https://www.investopedia.com/ask/answers/122414/operating-profit-same-net-income.asp https://www.investopedia.com/ask/answers/122414/operating-pr... Judging by the numbers you provided it appears Amazon was barely cash flow positive during your specified time frame.
- jasode 6y ago>Net income is not profit. A positive +net income is net profit. The "net profit" has more expenses subtracted than "operating profit" but "net income" _is_ profit. [fyi I wasn't the one that downvoted your comments.]
- codegeek 6y agoIf net income > 0, it is profit. If net income < 0, it is loss. That's what my accountant taught me.