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The difference between the Google scenario and Amazon is that from what I can see, Amazon makes money on almost all of the products it's rolling out vs. Google
by nemesisj 12y ago
The difference between the Google scenario and Amazon is that from what I can see, Amazon makes money on almost all of the products it's rolling out vs. Google not really directly making money out of most of its products.
- djrogers 12y agoIf Amazon made money off 'almost all' of the products it's rolling out, it wouldn't be posting record losses every quarter and attributing it to those money-losing products.
- npinguy 12y agoThat is because any new product has an upfront fixed cost in investment. Amazon is investing like crazy into growth, and as a result all their new costs are new products. Quarter to quarter their loss numbers are so low that it seems like they would only need to slow down their growth by a couple of percent and they would be instantly profitable. Not a bad spot to be in.
- res0nat0r 12y agoThey are "losing money" because they keep reinvesting all of their profits to facilitate all of these new products they keep turning out, and the market doesn't like it.
- elsewhen 12y ago$150B market cap. 800%+ cumulative gain over last ten years. I think the market is liking Amazon's strategy thus far.