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Amazon typically isn't spending the lion share on user acquisition, it's plowing it into expansion and infra. Most recent issues/losses were due to a massive in

Amazon typically isn't spending the lion share on user acquisition, it's plowing it into expansion and infra. Most recent issues/losses were due to a massive investment in physical fulfillment centers due to pandemic demand.

wpietri 4y ago
I agree with what you say, but your tone to me sounds contradictory, so I'm puzzled. Amazon "plowing it into expansion and infra" sounds exactly like "they prioritized growth", doesn't it?
- TrueSlacker0 4y ago
  Or they are investing internally for the future. You can plow lots of money into internal improvements for little to no growth in revenue, but at their scale saving just 1% more is a large amount of money. Not to mention a possible strategic advantage.
- Ekaros 4y ago
  The key point to takeaway might be that it is different to invest in things than it is to essentially dump your product to gain market share or customers. First is building datacentres, ware houses and so on. Later would be providing services like taxis below cost. With infra, you still have the stuff next quarter and following quarters. With later it is already gone.
- grogenaut 4y ago
  tone more came from typing on a phone... but the parent, I read, a saying companies that are not turning a profit are mismanaging their money, which I was contradicting. I randomly had lunch sitting next to a dude, while I was waiting for a movie to start, I was 24, maybe 1 year out of college. The service was slow because a waiter just had to leave. We both had been to the place and weren't concerned about the time. Started talking to him, we he was retiring. I was just starting. Dude was selling his company for $195M in 2001. Turns out he did compressed air/etc, and competed with praxair, who he was selling to. I asked him what his strategy was. "I invest in Me, not the market, it's the only thing I understand or trust". He kept expanding his business when he could, got tons of certs and trainings to do everything in the industry he could. He started from it from quitting as a sales guy for another company he disagreed with. Anecdata yes, but You can't really grow a business without investing in that business and that means taking some profits and putting them back into the business.

wpietri 4y ago

I agree with what you say, but your tone to me sounds contradictory, so I'm puzzled. Amazon "plowing it into expansion and infra" sounds exactly like "they prioritized growth", doesn't it?

TrueSlacker0 4y ago
Or they are investing internally for the future. You can plow lots of money into internal improvements for little to no growth in revenue, but at their scale saving just 1% more is a large amount of money. Not to mention a possible strategic advantage.
Ekaros 4y ago
The key point to takeaway might be that it is different to invest in things than it is to essentially dump your product to gain market share or customers. First is building datacentres, ware houses and so on. Later would be providing services like taxis below cost. With infra, you still have the stuff next quarter and following quarters. With later it is already gone.
grogenaut 4y ago
tone more came from typing on a phone... but the parent, I read, a saying companies that are not turning a profit are mismanaging their money, which I was contradicting. I randomly had lunch sitting next to a dude, while I was waiting for a movie to start, I was 24, maybe 1 year out of college. The service was slow because a waiter just had to leave. We both had been to the place and weren't concerned about the time. Started talking to him, we he was retiring. I was just starting. Dude was selling his company for $195M in 2001. Turns out he did compressed air/etc, and competed with praxair, who he was selling to. I asked him what his strategy was. "I invest in Me, not the market, it's the only thing I understand or trust". He kept expanding his business when he could, got tons of certs and trainings to do everything in the industry he could. He started from it from quitting as a sales guy for another company he disagreed with. Anecdata yes, but You can't really grow a business without investing in that business and that means taking some profits and putting them back into the business.