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This article emotionally feels right, I get it. But … the issue is Amazon isn’t making this enormous profit. And what profit it does make mostly comes from AWS.
by milesskorpen 3y ago
This article emotionally feels right, I get it. But … the issue is Amazon isn’t making this enormous profit. And what profit it does make mostly comes from AWS. Even given reinvestment, I don’t think the article really lines up with reality.
- freeopinion 3y agoI swear I heard Jeff Bezos personally thank all Amazon shoppers and employees for funding Blue Origin. Perhaps you mean that Amazon doesn't make an enormous profit per item, but on the whole...
- milesskorpen 3y agohttps://www.macrotrends.net/stocks/charts/AMZN/amazon/net-income https://www.macrotrends.net/stocks/charts/AMZN/amazon/net-in... Amazon net profit was $278mm in Q4 2022. That's peanuts for a company of that size. Amazon profits are not the same as company valuation. People can value a company highly and the company can make few profits (at least for a period of time). Bezos has made a ton of money because of the valuation, not profits.
- lores 3y agoAmazon is famous for reinvesting all profits into more growth. An accountant would need to dig through their books to get an idea of the costs that aren't self-serving before meaningfully estimating profits.